BLK hedging arrangement (@$1700+) should have seen capital shift from unhedged producers to hedged producers whilst POG is falling. That is historically/typically how hedged/unhedged producers experience flight of capital in a bull market.
Capital shifts between hedged/unhedged producers depending on POG.
For BLK the price of gold has not changed at all. They have virtually banked $85 million dollars with their hedging contracts. So why have we seen such a dramatic drop in SP?
The market punished BLK for late announcement... Happens all the time. Just the way it is. BLK should have had 80c level as support not as resistance.
As i said earlier, it is quite unfortunate for BLK.
BLK Price at posting:
73.5¢ Sentiment: Hold Disclosure: Not Held
