Ann: June 2024 Quarterly Activities Report, page-7

I agree it’s good they have not hedged any further, but surely you can’t be serious that it’s good to see the hedging price starts with a 3.

NST has hedged 1,823,000 ounces at an average price of A$ 3,122 per ounce over the next 4 years. Those sales will generate revenue of $5.69B. Clearly, the spot price will fluctuate over the next 4 years, but if that number of ounces was sold at the current spot price of say A$3,600, that would generate revenue of $6.56B.

In other words, compared to sales at the current spot price, the hedging policy is costing NST $870,000,000. Please tell me that I am missing something here, because I would be delighted if I am.

To add insult to injury, the hedging price for gold sold by NST in the June half of 2028 is $3,603 per ounce, which is comparable to the current spot price. If you genuinely believe that the price of gold in 4 years time is going to be equivalent to the current spot price, you should not be investing in NST, or any gold miner for that matter.