re: hedges - crs and gym Hi, billytea.
You mentioned CRS' hedge of 30% of resources @ $A500/oz.
My notes have, from August 2002 -
62% of the calendar yaer 2002 production was hedged; 177000 oz @ $A493/oz.
That is now behind us.
They stated they had another 121,759 oz of further hedges (2003 on) and were covering at 44,250 oz/quarter. This hedge would be entirely covered by September 2003 (unless they put in new ones - unlikely now).
Also, with Sept 2002 production at 67,430 oz, and output likey to increase, they still have considerable exposure to spot price increases.
Re GYM - not so nice.
It appears they have hedged ALL production for the next four years at $A526/oz (209,100 oz, with 01/02 production 51,702 oz). Unless they can ramp up production or roll these hedges out, they will make NO extra money from spot increases.
But long-term, things aren't so bad. Their resources are/were over 780,000 oz and they are exploring aggressively ($25 million to be spent over 4 years).
They are not my favourite company, but still one worth having a few shares of (ouch! My English teacher ...).
PS. GYM holders - did you hold, buy or sell yesterday? I held and bought (at 58c).
LHG
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