17 replies to this topic

[johngeorge]

I'll leave NEM to others---I'm buying ABX. IMHO ABX easily outperforms NEM over the next year or two.

Cirrus

You may well be absolutely correct, however, in the short term I see a world of difference between the two stocks. NEM chart here. ABX chart here.

Best to you.

[senorBS]

Muy bueno day for NEM yesterday as is traded excellente as the sector plunged, bottom at hand Senor thinks. BS all the way Senor

[johngeorge]

Muy bueno day for NEM yesterday as is traded excellente as the sector plunged, bottom at hand Senor thinks.

BS all the way

Senor

Senor

I sold my small position in NEM today EVEN THOUGH it held support @ $38.64. Too chicken to hold it over the long weekend although it was not much of a bet. Took a tiny loss on the trade. It may well be come next week I will be kicking myself in the butt for not hanging on because, as you say, a bottom here is a very good possibility. Still holding my core position which is USERX and the plan is to hold on to that until the year 2012.

My best to you.

[SemiBizz]

I think this puppy is going to $37 and then $34....

[skott]

I won't touch nem anymore. I believe it has the most hedged ounces of any major and from much lower prices and their operating costs have gone way way up. Institutional money may go into it but I'll take my chances with AEM, GG, GFI, RGLD,AUY and a host of juniors

[senorBS]

I won't touch nem anymore. I believe it has the most hedged ounces of any major and from much lower prices and their operating costs have gone way way up. Institutional money may go into it but I'll take my chances with AEM, GG, GFI, RGLD,AUY and a host of juniors

Skott, am I under the mistaken impression that NEM is unhedged? Gracias



Senor

[skott]

yes, senor. I just read a report from Doug Casey that NEM has a very large hedge position. I was dissapointed as well. I will get the exact figure for you soon.

[skott]

nem's prodution has been declining at an annual rate of 11% cost's last year rose, depending on how you measure, by 30% to 50% bleeding cash and according to casey's letter if it continues at this rate all cash is gone in 2 quarters hedge is 1million 850 thousand oz at avg cost of $384 per oz and if they pay $700 to unwind it the cost the company in excess of half a billion The gold industry is in sorry shape and facing some heady challenges that would seem to indicate lower supply in the future which means higher gold price all else being equal. I always bought NEM(in the past) and there are so few choices. best wishes p.s. Barrick and Anglo gold both have much larger hedge positions than nem. NEM is third largest from what I read.

Edited by skott, 27 May 2007 - 11:11 AM.