mark calderwood tips us$2500 gold next year .., page-12

This is what RBS Equities analyst Sam Berridge wrote to clients about the hedge facility on August 31, 2011.

"Hedged gold represents roughly 7% of reserves and 25-35% of gold production, based on our forecasts over the delivery period. PRU?s exposure to the gold price ultimately will depend upon the delivery schedule into the hedge book. By way of example, assuming delivery of 30% of production into the hedge book and the current spot price of US$1835/oz, the achieved gold price would be US$1660/oz, providing a healthy margin at our forecast cash costs."

In my opinion, this confirms that the forward sold ounces are a relative non-issue, particularly for any PRU shareholder who has been in the stock for a significant period of time and is therefore sitting on very substantial paper gains. If you want something to worry about focus on the potential emergence of Islamic fundamentalism in the far north of Ivory Coast and what that might mean for the development of Tengrela.