gold price drop favourable, page-6

I think youll find that SGW costs werent that bad when they first began their hedging,but with low grades and problems with their mines costs have blown out.
A drop in the gold price means their market book value of their hedges reduces,my guess is its up around 1 billion in the red now.
Remember they have to deliver into the hedges ,not sure of time frame but say once a mnth,if they donty have the gold then they will have to go into the gold market and buy it,price wont be that much different to what its costing them to mine it now.

Hope that helps,prolly not a bad stock to take a short position in.