re: Ann: Appendix 4E 2008 Annual Management ... USD- Any NZ or Australian gold company which DOES NOT hedge against a worsening USD is bordering on lunacy.
Yesterday the government of the US signed off on a 735 billion dollar US Tarp scheme, they have already wasted approximately 500 million. The US is in debt to China and Oil providing countries for billions.
The ONLY nett result of this spending which can be predicted is rampant inflation in the USA. For those non Zimbabeweans, Brazilians and Argentinians (and indeed Weimar Germans in the audience which probably does not include haka) the end result in Zimbabwe as an example was a loaf of bread costing a billion Zimbabwe dollars.
Therefore having now determined that the major if only risk to Oceana is a collapsing USD, then the company has made a very sensible hedge. The reason hedges were taken up by gold companies is the effect that changing relevant dollar values can have on a company's success or failure.
re: Ann: Appendix 4E 2008 Annual Management ... USD- Any NZ or...
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