Ann: Quarterly Activities Report , page-9

Woah easy guys there are a couple of points you need to consider before you jump to this conclusion about thier hedging,

1. Perhaps they got paid cash in exchange for taking the hedge
2. It is only two months worth of production (jan, feb 13 quotation)
3. Maybe they want to make sure that cashflow is stabilized to AVOID a cap raising if prices tank a bit while they rake in money on silver production.

People complain that PEM is too high risk, then they make sensible decisions and they get criticised. As I said dont assume that they didnt get a payment in exchange for taking the hedge, it may also be a demonstration of goodwilll in preparation for a future deal.

I was happy with the quarterlies and still believe 2013 will be our year.