trading halt, page-4

probing

you could be right. from my reading, they certainly will have to deliver into the forward sales - even if they do not have to deliver into the put options. certainly a bit scary, considering that production in no way seems to match those forward sales. unless, i am mistaken, those "call options sold" are effective sales - ie they will be called upon to deliver. those call options, will, no doubt be called upon.

mmmm - unless, i am reading things the wrong way, but i have jsut been looking at the last annual report, and comparing the numbers - and, hopefully i am wrong, but to me, it seems that the company has been gambling against the gold price

according to the annual report, the forward sales position, at june 30 2005, and maturity within ONE year - ie june 30 2006 was a total of 142474 oz at us $344 . i am ignoring the put options, as the company does not have to deliver into them. it now seems that the forward sales, due june 30, 2006, has ballooned to 451000 0z. the call options sold, and maturity, by june 30 2006, according to the annual report, was a total of 165000 oz - with a strike price of au$565. this is now 135000 oz, with a strike price of about au$664.

unless, i am mistaken, but it would seem that the company simply cannot deliver into these contracts.

i might be totally wrong, but i would think the important question, would be - at what premiums did the company write the call options

surely, i am wrong, but the forward sales position of 451000 0z, and due by june 30 seems to be unbelievable!!!!!!!!!!!!. this simply does not remotely match production, the company would need to be producing at the rate of about 1m oz per annum to meet this

something must be wrong somewhere