Miners don't sell forward at the moment. The irony is that almost no gold miners sold forward into the $2800 aussie gold price but they were keen to sell at $1600-$1800 $AUD You obviously haven't been around very long because most aussie producers sold forward their production in various percentages and rrl is probably the worst example. The reason for the forward selling at the same time by these producers appears to me to be the "sheep syndrome" where one just follows the other. Some miners have to sell some production forward if they borrow money from the banksters because the banks just want their money back and couldn't give a rats ass as to whether the company turns a profit or not so some of the forward sales are legitimate. These rrl forward sales were initiated years ago. There is absolutely no point in rrl getting rid of the forward sales program as it would be too costly and it would hammer their balance sheet unnecessarily and put them under even more pressure. The best thing to do in my opinion is to string them out so they have less of a detrimental effect on the bottom line.
RRL Price at posting:
$2.59 Sentiment: None Disclosure: Held
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