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REMO RESOURCES INC V.RER

"Remo Resources Inc is engaged in the acquisition and exploration of mineral properties in Canada. The company's primary objective is to explore mineral properties to a stage where they can be developed profitably or sold to a third party."


TSXV:RER - Post by User

Bullboard Posts
Comment by wrightonon May 09, 2003 12:33pm
161 Views
Post# 6079049

RE: Book Value.....

RE: Book Value.....bTmKo, you should be careful about your comments or you may lose credibility. Your comments on hedging suggest you don't understand the purpose of hedging, nor do you understand currency exchange rates. First, many commodity-based companies hedge, not because they think they can second-guess the market and make a profit, but because they need a guaranteed revenue stream to enable realistic planning and exploration. The company that doesn't hedge leaves itself open to financial disaster if commodity prices drop dramatically. Yes, if prices rise, you don't get the same upside, but that's part of the risk management equation. Second, futures contracts were in US$ at an exchange rate of .64. We're now over .70, I think. As the C$ goes up, we get less for what we sell at current exchange rates. A contract at .64 is an excellent deal for RER if the C$ continues to rise, or even stays where it is. Watch your math - it will get you in trouble if you don't understand it.
Bullboard Posts