Remember we are not even a month into this 7 month hedge. None of us have got a clue how it will end up, but $3100 doesn’t look too bad to me at the moment. For all the talk from the gold bulls about the POG “surging” forward, it just doesn’t does it? The problem is there is a whole generation of fund managers around the world, under the age of 40, who weren’t born or still in their nappies during the last real boom in ‘80-82, or whenever it was. And they don’t give a toss about gold. So who knows what’s going to happen. All we can do is try to get that gold production up to 50k ozs per year and get a 10 year mine life. Then we will definitely re-rate. I have said it before but I think we should hedge( or some how lock in an price) about a million litres of diesel. That would go some way towards controlling our costs for a while, and it’s relatively cheap at the moment.
BCN Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
