the letter, page-16

Hi jumpstart,

Can you check your figures on the PGI hedge you quoted?

According to what I have read the hedge was for 126,000oz at US$1,358 per oz.

In addition the hedge was made in December 2010, where I note that the spot price for gold on 15 December 2010 was US$1,364.

Taking into account the standard fees and variables I would say PGI achieved a good hedge rate in meeting Macquarie Banks loan conditions.

I note also that you did not indicate how long the hedge was for, or who the counter parties to the hedge were (was Macquarie Bank the counter party, or was the hedge done through normal commercial gold hedging channels?).

Seems that there is a fair bit of confusion floating around on this hedging topic.

cheers, kentwang