Yes Emerald and Mining Nut at present you are both correct.
OGD will produce with partial kiwi costs, labour and middle management in particular. Oil, another cost and gold (receipts) are in USD.
When the USD becomes tending toward valueless (which it has done previously- 5 to the NZD after the Great depression!!!) gold receipts will be way up, oil will be way up and costs will be also up.
The problem comes as we change the medium of exchange from USD to another currency say the Yuan (renminmbi) which may happen if the inevitable massive inflation negates the advantages of the USD for world traders.
For OGC the demand for gold from US investors will outweigh most of these issues. The hedging of 1/3 of production is a very smart move by management as IF the USD tanks, OGC will still have a profitable operation.
If you don't think the USD will tank-see Buffet et al!
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