GOLD and CRASH, page-10

Although gold companies that are not constrained by financiers demands are moving away from hedging, some companies that are could be getting better AUD "lock in" prices now than are presently in place for those companies.

I noticed that DIO had calculated it's income for the first 18 months on the basis of AUD 550. This morning the spot price is over AUD 582.

I don't know what hedging policies DIO has but it illustrates the point that some companies could be more financially viable than they are if they hedged at the higher prices now available.

(From memory ALK and SBM have been locked into forward selling at around slightly less than AUD 500.)

It's always seemed to me that "todays" gold price (unless taken advantage of) merely provides sentiment toward gold stocks. Of course there are those who see gold as being on the up for some time yet. If that is so gold stocks would benefit even more.

The future AUD/USD complicates the equation somewhat. Coventional wisdom is it will rise significantly.
We shall see.