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Newmont hedge reduction story corrected

Section: Daily Dispatches

9:40a ET Tuesday, September 17, 2002

Dear Friend of GATA and Gold:

And now even Barrick is getting into the
hedge-closing act on a good day for
announcing it.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Barrick Gold sets bold growth plan

Canadian miner aims to double profit,
curb hedge position

By Bill Clifford
Tuesday, Sept. 17, 2002

TORONTO -- Barrick Gold aims to double its
profit by 2006 with a new growth plan that
centers on a $2 billion mine development

Barrick's long-term plan calls for an average
2 million ounces of additional annual gold
production for the next 10 years at expected
cash costs of $125 per ounce. That would
reflect 29 percent lower costs than its
current production base, the company said in
a press release Tuesday.

Barrick said it expects net production to
increase by 1.2 million ounces, or 21
percent, to 6.9 million ounces in 2006 at
lower costs. As a result, Barrick aims to
double its earnings by then, an assumption
based on a $325 per ounce price of gold.

Gold futures prices have traded in the $316
to $325.50 range over the past week, and
closed Monday at $318.50 an ounce on the
Commodities Exchange division of the New York
Mercantile Exchange.

Barrick plans to reduce its forward sales
position by one-third, to 12 million ounces
from 17.9 million, by end of 2003. This would
equate to 15 percent of the company's current
gold reserves as compared to 22 percent

quot;We are further reducing our hedge position
for three main reasons: interest rates are at
40-year lows, leading to lower forward
premiums; Barrick has never been stronger
financially; and the outlook for gold prices
is positive,quot; said Jamie Sokalsky, chief
financial officer.

Barrick earned $59 million profit, or 11
cents a share, in the second quarter of 2002,
matching Wall Street estimates.

With about 82 million ounces of gold
reserves, Barrick is North America's second-
largest gold producer, behind Newmont Mining.

Shares of Barrick Gold shed 9 cents on Monday
to close at $17.46. Newmont Mining climbed by
53 cents to end at $29.87.