224,250 oz hedge at A$2,772 with current spot at A$3,785 -...

224,250 oz hedge at A$2,772 with current spot at A$3,785 - somebody has to answer for that failure.

The problem is compounded by the excessive ounces agreed to in the hedge, they did not need to be this high, or go this hard on the hedge, it shows poor business negotiation skills, which is somebody's responsibility, and whoever it was within the company, needs to be held accountable, and needs to pay, probably with their job.

Those who went big on the capital raise at $1.55 are not happy, so the only way they can recover some of their losses in the short term, and reduce their average buy-in price, is to either lend out their stock for Shorting, or to actually Short the stock themselves. It's a reasonable tactic, and a path well trodden.

The question for retail holders however, is how low will the big funds Short the stock, before their spreadsheets show the level at which to turn. None of us can know, and the guesses are likely to vary from something like 85 cents through to the current close of $1.15.

BGL is now the second most Shorted gold stock on the ASX, but they've brought this on themselves.

As I've said, someone in their ranks is incompetent and should be made to pay for their errors of judgement, and their lack of business acumen. But who is that person, or persons?

Gw