Hi terpet,
Not too often I post on PGI but I do often see exuberant references to their hedge and its worth - as if it were a liquid asset.
I do not share the view that a falling POG is good for PGI or any other goldie.
The hedge is in place because not only is it a protection (and a very welcome one, currently) for PGI but also for its lenders and is no doubt a requirement of their loans.
IF the company were able to cash in the hedge, they would then be exposed to a very depressed price for their product and even with a relatively low production cost their income stream would be significantly affected. Granted they would have a significant cash injection and/or the ability to retire a significant chunk of debt, but what then?? going forward with a significantly smaller cash flow than the already marginal scenario?
Happy that we have it - not so sure that its increasing value is better for the company than an increasing sentiment and outlook for gold .
Just another view, cheers Foyt.
- Forums
- ASX - By Stock
- Canarc corporate presentation
Hi terpet, Not too often I post on PGI but I do often see...
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AAU (ASX) to my watchlist
|
|||||
Last
0.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.845M |
Open | High | Low | Value | Volume |
0.4¢ | 0.4¢ | 0.4¢ | $19.62K | 4.906M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
12 | 8920611 | 0.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.5¢ | 6313911 | 11 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
10 | 8283111 | 0.004 |
46 | 45365201 | 0.003 |
34 | 49244035 | 0.002 |
11 | 25699950 | 0.001 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.005 | 6313911 | 11 |
0.006 | 2605451 | 6 |
0.007 | 3526213 | 5 |
0.008 | 4500000 | 3 |
0.009 | 2675828 | 3 |
Last trade - 16.10pm 22/08/2024 (20 minute delay) ? |
Featured News
AAU (ASX) Chart |
The Watchlist
SS1
SUN SILVER LIMITED
Gerard O'Donovan, Executive Director
Gerard O'Donovan
Executive Director
SPONSORED BY The Market Online