Ann: 17% Increase in May Production, page-67

By my rough calculations, had HGO hedged copper near the top of this year’s copper price, HGO would have stood to gain an extra $150 million in revenue for the initial 65,000 tonne mine plan.

I’m not pointing the finger at HGO, I’m just curious, at what point does a company say “we must hedge”?

Now I’m sure many here are optimistic that the copper price will be higher than US$5.10 per pound in the not too distant future, however, if this doesn’t eventuate, then that is also a possibility.

I have been investing in mining companies for more than 30 years and unfortunately Australian companies lack the prescience to hedge. I would love to see some Australian think tanks dedicating some serious research money on “when to hedge” because I think many Aussie companies are in desperate need of this research.

I remember visiting Kalgoorlie’s Super Pit mine in 1996 - it was a ghost town. Gold and other commodities took a dramatic fall. It seems Aussie companies are none the wiser since this time.

Here is hoping for better commodity prices.

Good luck to all holders and thank you to whoever has been selling me shares today and the last few trading days.