would have been to close the hedge on recdent reversal up in...

would have been to close the hedge on recdent reversal up in AUDPOG thru 1150 and pocket the cash starting again with everythingintact inc extra CASH ....... and then to use this cash to grow by acquisition.

This hedge book gain is already included in recent market cap rerate which actually is at RISK if we see next leg of POG mioving UP TOGETHER WITH USDX in same direction ........ as happens often in major wave swings which look like beginning now.

Have to remember POG is a FEAR play as much as USD so if we see major new weakness in global economy / equity markets / poss terror etc, there is a good chance both USDPOG and USDX will rise in tandem and hedged goldcos will not benefit as much ... and Olympian Gods forbid ... the hedged ones might actually be at serious risk if they delay meeting forwards.

AUDPOG is still "only" 1180 off the 1130 lows and well below the 1500 highs CAH hedged at ... so not too late to cash it out and show some real sector leadership.

General opinion of course. I dont hold any CAH but always keep an eye on peer group members.

IMBOOC

PS IF USDPOG hits 1500 and global economic deterioration plus fear factor sees AUDUSD heading in "c" wave down toward "a" lows 0.6 region over next 12 months say, AUDPOG would see 2500 and CAH would be stuck with 1500. And again saints preserve CAH if it couldnt meet forward sales schedule coz of production problems.

But if they closed out now, putthe cash in the kitty / toward development or acquisition and relied on SPOT GOLD ... reckon good chance they would quantum leap on growth and recognition of management "quality"

Opinion of course ....... calculated call ...... prefer to have the money in the hand and all options open again.