Meanwhile, over at Blackcat (BC8), they are operating the exact opposite of NST's strategy of selling every gold ounce, the moment it is mined, while at the same time, hedging gold to death, as if the gold markets are going to collapse, at any second. In other words, this 'minnow' mining company has confidence in their business product.
This strategy has been talked about for a long time, on the NST Hot Copper threads, usually to great ridicule by the majority of the forum members. Nice to see the concept, validated for once, by the gold miners!
'BlackCat’s Managing Director, Gareth Solly, said: While Black Cat is not a bullion bank, we are not a cash
bank either. It is hard to justify producing a safe haven asset, in gold,and then converting that asset into an
asset losing its purchasing power, in cash.
After working capital and growth requirements, we are setting $20M of gold aside, comfortable in the
knowledge that gold is a high-quality, liquid asset. At the end of the day, we are in the gold business and
investors can choose Black Cat because they are seeking leverage to gold. And yes, the gold price could go
down,and we will hold sufficient cash to cover such a contingency.
We will regularly review how the strategy fits with the Company’s cash requirements, risk profile and investor
expectations.'
(20min delay)