alternative view, page-3

The bit that sticks for me is that the whole purpose of hedging is to to de-risk the future price of gold and/or forex rate on conversion. Now at the time they decided to hedge, we (the market) all nodded sagely that that was a good thing to do and now just because the price of gold is currently rising faster than thought earlier, the company want's to crystallise the hedge, abd definately book losses now to gain greater future upside in the gold price - and what if it comes down? Does the company go - oh oh well then we need to sell forward again to protect and derisk our ongoing business.

Now with rising production costs at the start of production means the coy is effectively borrowing money to book a loss on the close out of its hedge position.

Not great management imho.

But as small holder I'll keep the faith.