LOS ANGELES, CA, (NAMC) - Possibly the largest gold producer in the world, Barrick Gold Corp., has reported their first quarterly loss in over five years. This is mostly due to the costs that were incurred to exit forward contracts at below market prices.

Their first-quarter net loss was $159 million, or 18 cents a share, compared with net income of $224 million, or 29 cents, a year earlier

These contracts were obviously negotiated when gold was much lower as their average sales price was $386 an ounce, gold is hanging in the $640 to $685 range. Initially it may look dim with the loss for the quarter but eliminating the forward contracts gives them the ability to sell their commodity at a higher rate which should show in their next quarter.

Just to clarify, a forward contract as it relates to a gold transaction is a long term commitment from the buyer to actually buy Barrick's or any mining companies commodity at a fixed discount or even a fixed rate. So getting out of those contracts is actually a good thing longer term as gold continues to rise.

This move actually should have been made last year but they still haven't missed the boat.

David Kingston
Business News Correspondent
NAMC Newswire
www.namcnewswire.com

NAMC Newswire Note:

NAMC Worldwide has added a new service to its line up, they are now arranging the private buying and selling of various commodiites such as Gold Bullion, Crude Oil, Copper, D2, Scrap Metal and others. With relationships with Private Buyers and Sellers, NAMC has the ability to arrange Private Transactions in most quantities.

Please visit http://www.namcworldwide.com/gold for more information.

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