Ann: Quarterly Activities Report, page-10

@debarwa "hedging is killing us "... but Macquarie is very happy. They don't care about the miner's bottom line as long as the mine can remain solvent enough to produce enough to deliver into the hedges. I can't think of a single case in recent times where a financier's hedge deal wasn't profitable for the bank. I can recall plenty of examples where excessive hedging obligations became "the straw that broke the camel's back" when a junior miner was struggling to get through the inevitable start up hurdles. There are better ways to protect against unexpected drops in the gold price but small companies don't have the clout or the expertise that the financiers have. That said, this is a good report from BGL and they should be able to improve their cost structure with the grades they are mining which compensates for the "overburden" of the hedges.