AUDE..

The new CEO of Barrick HAD to make that move..the shareholders were crucifying him and past CEO's for that hedge book and many port.managers wouldn't touch the stock because of how far and how much of their production they had hedged..

So the buying back of the hedge was imperative...not a great vision of forsight on the price of gold...Now this is good for Barrick shareholders but suffering from stock dilution to the tune of $5-6 billion worth of new stock issued to cover the hedge...will hold the share price down for some time and like the sale of the hedge at the top of the gold market..kind of a "Hail Mary" play..

AND if gold price drops back to the $700-$800.00 market area,which it will later this year with no sign of inflation anywhere in sight,Barrick shareholders will suffer on that end also but time will eventually even out the playing field for Barrick...

When Peter Munk intoduced the hedging program in '66 he was a Market "Genius"and made a boat load of money on falling and stable gold prices over the years as gold appreciated....but the hedge book is not your friend when you have your forward production sold at $400.00/oz.and the price on the spot market is $1000.00!!!

You are getting roasted..which management has been getting for years..this has been a bone of contention..the biggest at all the AGM's...

So for Barrick that was a "Do or die" move..not a visionary insight as to where the price of gold is going..although it will be well above where Barrick had their gold productiuon hedged ..so it was a positive..though enormously expensive move for Barrick...

KXL on the other hand would do well to sell a million ounces of forward production at $1100.00-1200.00 /oz....at this time...to raise money..which is a possibility...if we decide to mine it our selves..

Just a million ounces though...we are keeping the other 50 million ounces in the ground until the price goes up..

Portee