MetalBee and RalphDagg, you make good arguments to support the...

MetalBee and RalphDagg, you make good arguments to support the hedge descision
we are all on the same side in thinking this is a great company and has a bright future.

I do disagree with the view that those who criticize the hedge are tealeaf reading by expecting higher gold prices. There are endless amounts of chartists pointing to major moves up^.. and how many forecasting down now? Mgmt themsleves have acknowlegded the consolidation is over and the trend is up. On top of which; theyve picked a spot price poorly, while gold wasnt overbought and finished its run and also while the AUD was in an overbought position.. unless they are expecting some serious upside in the AUD .. then there isnt much to justify the price point... certainly not 70% of prod.. maybe they need to start averaging their hedges picking overbought spikes on a monthly basis. 10% of prod hedged each month on any overbought signals would equate to 60% hedged over 6 months on a rolling basis, and perhaps a stoploss element if they see a change of LT trend.. or as they put it "contango". it would give them their smoothed moving average they are looking for.

The share price action today actually resembles the mixed emotion response on the thread here.. its a 50/50 warm/cool receptiveness to the ann. or not far from it. I think it would have been slightly cooler had we not been still sitting on awaiting the div ann.