"they have hedged 300K ounces at $1500 which would have to have been the smartest hedging bet in many years."
Hmmnn ... not sure how smart that is considering it is only 20% above current prices. In today's environment I'll prefer a solid, unhedged junior gold producer any day to a hedged junior gold producer.
Foe example, last year ADU was pleased to have hedged 290,000 ounces at US$1075. Based on Friday's gold close of US$1157 that is a mark to market loss of nearly US$24 million. That's starting to make the US$76M finance finance provided by Macquarie Bank look quite expensive.
Now all we need is for the gold price to go to around US$1400 and ADU will be carrying mark to market losses of more than $US100 million.
TRY is an unhedged junior with a record of paying 10 consecutive dividends and only has about 80 million shares on issue.
TRY is in the process of bringing the Caspsoso gold and silver project into production later this year. From memory the cash cost of gold production after allowing for silver credits is expected to be around $90 to $100 an ounce. This was also based on much lower gold and silver prices. DYOR.
