Gold on rise, and to better understand the OGC annual results as...

Gold on rise, and to better understand the OGC annual results as the gold prices RISE, the (unrealised)paper loss on hedges also rises. One would expect that a solid rise in gold price would benefit large scale producers of gold and this is indeed true for the REAL cash position of OGC. However the mark to market accounting method appears to demonstrate a rising gold price causing losses. This is not the case in fact. OGC makes a healthy margin on selling at hedged prices and a much greater profit on spot selling. A rising gold price revalues OGC in ground and sale expectations- As the gold price rises SO WILL OGC's financial position. The NTA value noted as $US1.53 is now over $US1.60. This is the barometer OGC's followers should follow.