The big banks taking position here could play out in several...

The big banks taking position here could play out in several ways. Look at the option chain and the catalyst for each.

1) Banks holding shares for shorting. Because naked shorts are illegal in order to facilitate shorts banks need to hold shares first to lend out, technically no charge for them assuming this is initiated by the short seller. This scenario of more shorts is negative for share price, someone knows something indicating company/share price to fall. The likelihood of 1) has diminished with the positive update from the company on the Q4 production and cash build $60m. This should be reflected in the coming days short report.

2) Holding shares to cover selling call options. Banks selling call options (right to buy) to reduce risk will buy the underlying shares to cover the options. For example in the event share price massively spikes, the call option would results in deep losses. Bullish because people are buying call options. Likelihood is low haven't seen any increase in call option trading.

3) Holding shares for clients buying. This scenario is bullish for share price, opposite of 1). Bullish. Very likely scenario buying for ETF or other funds.

4) Holding shares for positioning. For example positioning for possible corporate action like takeover/merger etc. Likely scenario but don't want to speculate.

Overall I feel the Q4 production update is very bullish as it removes alot of the short to medium risks for the company. The main downside risk remains to the gold price environment and cost pressures.