MYG currently have 50,000oz (3 x 16,666 apparently) forward sold over a three year period at good $$$. Should MYG look at further forward sells?
Gold price may or may not hit $2k, if we see another GFC type event we could see a sell down in commodities including precious metals.
I note the futures market prices for (currently cash $1635) December 2013 $1654 and further out Dec 2017 $1780. Should we see a market price of say $1700, then the foward sell price would increase in line.
Then we have the A$, (note the fwd rate to Sept 13 is currently 0.982) given weakening in interest rates and possible downturn in global commodity prices we could see the A$ at 95 or lower quite easily.
Given a forward sell can be done in two parts (the metal and the currency) it may be prudent to look at hedging a larger % of production.
MYG Price at posting:
7.8¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)