what is going on here?, page-5

I wonder if the market dislikes the 75% hedge factor..
as pog looks like heading to 420 or so
This is from Nov 03

Dust and Dollars
Despite a rising gold price, the Northern Territory's newest miner Giants Reef has locked in the price of much of its gold. The Chariot mine is forecast to produce 60,000 ounces of the metal each year and Giants Reef has already forward sold two and half years worth of production. Non Executive Chairman of Giants Reef, Bill Duchatel tells Lindsay Wright he's pleased with the company's hedging decisions so far.

But like your own house. A mine is often owned by the bank not by the company running it. For example Giant's Reef borrowed over 16-million dollars from ANZ Bank to bring the Chariot mine into production. ANZ's Saul Eslake says banks insist junior companies hedge production - to guarantee the loan. He likens it to having to take out mortgage insurance before buying a house. So Mr Eslake says despite the trend by the big institutional investors - like pension funds - to support non-hedged gold companies banks continue to insist gold companies hedge production.

So for a gold punters it is not simply a case of when the price is up you will see a return on your investment. Mr Eslake says when looking to invest in gold you have to do your own speculation on gold price.