caution warranted

LHG's hedged production is a cause for some concern.

Sure, it does have far greater reserves than the ill-fated SGW .... BUT its future production is the problem.

LHG cannot afford to let its production rate slip and must keep costs under control - otherwise a hedge book problem may soon loom large for LHG.

Then again, there is the perennial problem of sovereign risk ... not to mention the (remote) propensity for a major disaster due to volcanic eruption.

I have long crossed LHG off my list of gold stock buys due to the above .... and quite a few other reasons too detailed to go into on this thread.

'caveat emptor'