Comments on: Rio Tinto Sells Gold Investment As Gold Price Nears US$1000 http://www.dailyreckoning.com.au/rio-tinto-gold/2008/02/25/ An independent perspective on the Australian and global investment markets Sun, 08 Nov 2009 09:28:06 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Werner Jungling http://www.dailyreckoning.com.au/rio-tinto-gold/2008/02/25/comment-page-1/#comment-9688 Werner Jungling Wed, 27 Feb 2008 07:15:37 +0000 http://www.dailyreckoning.com.au/rio-tinto-gold/2008/02/25/#comment-9688 I think it is rather shameless and deceptive for company president and chief executive, Greg Wilkins, to speak as if higher gold prices are good for Barrick Gold, while having 9.5 million ounces of gold on the hedge book which exposes Barrick to nearly unlimited losses as gold prices continue to rise. Silver Stock Report by Jason Hommel, February 25, 2008 I think it is rather shameless and deceptive for company president and chief executive, Greg Wilkins, to speak as if higher gold prices are good for Barrick Gold, while having 9.5 million ounces of gold on the hedge book which exposes Barrick to nearly unlimited losses as gold prices continue to rise.

Silver Stock Report
by Jason Hommel, February 25, 2008

]]> By: matt http://www.dailyreckoning.com.au/rio-tinto-gold/2008/02/25/comment-page-1/#comment-9653 matt Tue, 26 Feb 2008 23:43:32 +0000 http://www.dailyreckoning.com.au/rio-tinto-gold/2008/02/25/#comment-9653 "Barrick Gold paid a premium for Rio Tinto’s stake." Huh? According to you ("Take a gold price of $940, subtract a production cost of $300/oz and you get $640 per ounce"), Barrick bought 4.6 million ounces of proven + probable. If we say that Barrick can actually mine 75 percent of those reserves, that means Barrick bought $2.2 billion of gold for $1.7 billion. That doesn't sound bad to me at all. Barrick is betting that prices will remain here (or go higher) for the next 5 years and Rio is betting that they will go down. "Barrick Gold paid a premium for Rio Tinto’s stake."

Huh? According to you ("Take a gold price of $940, subtract a production cost of $300/oz and you get $640 per ounce"), Barrick bought 4.6 million ounces of proven + probable. If we say that Barrick can actually mine 75 percent of those reserves, that means Barrick bought $2.2 billion of gold for $1.7 billion. That doesn't sound bad to me at all.

Barrick is betting that prices will remain here (or go higher) for the next 5 years and Rio is betting that they will go down.

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