Nuvo Pharmaceuticals Inc NRIFF

SPRUCEBRUCE+TURKEYS

[Barruch]

SpruceBruce, at 1:30 est NRI -0.18 -3.73%_ CBJ -0.24 -10% In my humble opinion as a choice of producers you have chosen a turkey when compared to several others out there. Cheer up though when the wind is strong enough even the TURKEYS can fly. CAMBIOR after recovering from imminent bankruptcy not that long ago had no choice but to hedge much of their production to satisfy creditors did they not. This year when faced with a rising POG they had to scramble to cover some of their hedge and derivative obligations. This is from their third quarter report of October 21 2002: https://www.stockhouse.ca/news/news.asp?newsid=1365547&tick= "Reduction in Hedge Book In compliance with its lending agreements, the Company maintains a Revenue Protection Program. A decrease in the minimum required protection from 70% to 35% of production until the end of 2005 was negotiated effective in mid-June. In line with the lower hedging requirements and the Company's positive outlook on gold, the Company has reduced its hedge commitments by 31% since the beginning of the year through: * deliveries against existing hedges from production of gold; * restructuring of 434,000 ounces of commitments under variable volume forward sales agreements into 227,000 ounces under fixed forward sales, thereby simplifying the hedge book and reducing the mark-to-market adjustment on optionalities; and * the buying back of positions. The valuation of the mark-to-market value of the outstanding non-hedge derivative positions (optionalities) as of September 30, 2002, resulted in a gain of $0.8 million for the quarter and a cumulative negative adjustment of $14.3 million for the year to date. At September 30, 2002, the Company had gold commitments of 1,306,000 ounces at an average price of $299 per ounce. The Company intends to further reduce this commitment to one million ounces by year-end." $299.00 per ounce. How's that look against $350, $400, $450 what will happen if they have to cover their positions if the POG continues up. goodluck Barruch