huge sellers, page-33

re: huge sellers ... reason = hedge book Unless LHG's hedge has changed significantly from the figures given in their Dec 01 annual report then it is not hard to see why there is resistance to upward movement in their share price, even though POG is bullish.

There stated hedge book is:

Year Oz US$ Price
2003 470k 317.82
2004 448k 310.16
2005 363k 320.67
2006 230k 335.00

With annual production around 650k oz, that is a pretty substantial hedge book & at pretty scary prices even more so when viewed together with a depreciating US$ exchange rate !!

Don't know what production cost is but if the US$ weakens significantly, the 2003 & 2004 hedge committment could wipe out a substantial increase in POG

http://www.lihir.com.pg/reports/annual.htm

2001 Annual Report . . . Part 2 . . . page 17