Ann: AERIS UNDERTAKES ADDITIONAL A$ GOLD HEDGING FOR CRACOW, page-91

Hedging has it's place.

1. It secures some positive cashflow into the immediate future.
2. It provides "security" to outside creditors. ATM we are debt free but in the future we may wish to raise debt capital for the purposes of acquisitions and / or expansion. A good history of positive cashflow reassures lenders.
3. We have ongoing credit relationships with contractors and suppliers. Hedging reassures these creditors that their monthly invoices will be paid.
4. Likewise with our employees. It is nice to receive a pay cheque that doesn't bounce. They have dependant families and mortgages.
5. Our industry is relatively volatile and hedging brings a degree of stability.
6. I have full confidence in our Board and Management getting the balance right of the variables listed above. Besides they have far more facts and information in their decision making than we have.

A successful company has

• A great business model. TICK.
• Sufficient cash to bring the business model into reality. TICK.
• An outstanding management team to implement the above. TICK.

AIS is a moderately successful gold & copper producer. Copper & Gold are each in a strong bullmarket phase. AIS sp is sitting on strong support @ 13c. The future is bright.
Hedging maybe holding the sp back atm but hedging doesn't last forever. Meanwhile, as prices of both copper & gold increase AIS is developing it's business model with certainty. The best is yet to come. AIS will be bigger and better to maximise profit at a much higher prices for copper & gold in the future.