GREY:GRFJF - Post by User
Post by
SkyeCairnson May 20, 2008 7:23pm
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Post# 15091550
MTM on Gold Forward Contracts and SP
MTM on Gold Forward Contracts and SPAs we are approaching the end of the 2nd quarter and the start of the gold forward contracts having an impact on our revenue I have a question concerning the MTM. Does the MTM loss on the gold contract have an impact on the sale price of WGI or do investors just care about the EPS before this line item. The way I look at it if the price of gold keeps going up our revenue will be decreased somewhat because of the forward contracts and on top of that we will have a mtm loss to reduce our EPS given that it seems I should want the POG to be stagnant but that doesn't make any sense. Can someone point me in the right direction. Should I be wanting the POG to increase? I am looking at the short-term here say less than 1 year. I know in the long term the MTM has no bearing on the firms P&L
Thanks