in realation to my last post on CRS, just to let u all know i'm...

in realation to my last post on CRS, just to let u all know i'm not too crazy..



excerpt from the SILVER man himself : Theodore Butler


http://www.investmentrarities.com/04-05-06.html



It would appear that the largest derivatives loss in history just got a lot bigger. Due to the $65 per ounce increase in the price of gold during the first quarter, Barrick Gold Mining should report a $1.2 billion additional open loss on its hedge book (now combined with the recently merged Placer Dome). Combined with the $220 million dollar loss already booked early in the quarter, the loss in the quarter should come to more than $1.4 billion. The open 18.5 million ounce gold short position that Barrick holds puts the total open loss on its hedge book at well over $5 billion. As the late Senator Everett Dirksen used to remark, "a billion here and a billion there, and pretty soon you’re talking about some real money."

I know many contend that these horrendous hedge results are not really losses, but I would dispute that. In any event, they are, at the very least, negative to shareholder wealth. It’s kind of funny how when the hedges were going in Barrick’s favor years ago, the company was quite loud and forceful about how they were a big reason for Barrick’s success. They are not so loud and forceful these days.

Of course, I can’t know what actions Barrick may have taken on their hedge book until they report their results in a month or so, but my back-of-the-envelope calculations should prove close to the mark. I’ll let you know.




As i said Jim Sinclair clarifys it all but Barrick would have to take the cake as the biggest example!