I don’t know the history of the hedging but it was pure madness to commit so many years forward. I also am not sure that the nuts and bolts of the hedging were transparently disclosed. The way I read it was that the sales income per ounce of gold sold would increase over time which is contrary to today’s announcement.
If there is any positive from the hedging I hope this will prevent RRL adding to the hedging anytime soon so that the company can ride the gold bull market to the max when it gets into full swing.
RRL Price at posting:
$2.62 Sentiment: Buy Disclosure: Held
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