mark calderwood tips us$2500 gold next year .., page-8

"The only reason they have the hedge is because the banks required it of them because they had no cashflow."

Not quite correct Triage.

Your post should read imo:

"The only reason they have the hedge is because the banks required it of them because they had no cashflow and PRU Management chose to forward sell 220,000 ounces of gold at US$1250 rather than raise US$85 million of equity and so avoid the US$85 million bank loan and the fixed price hedging."

Should PRU's production move ahead nicely then I suspect PRU will deliver some of the gold at US$1250 as it is not a high percentage of budgeted production.

However, we should not forget that the difference between the spot price and the forward sold price is a PRU liability. Currently it is about US$130 million. At US$2250 it becomes a US$220 million liability.

I suspect the loan with the bank will first need to be paid off or terms renegotiated before PRU can start getting out of those hedges, which currently would only require the issue of about 40 million shares.