gwalia gold turns to dust, page-2

Is anyone really surprised? The management of SGW were the most blindsided, arrogant s-o-b's I have ever met. I repeatedly questioned their hedge book safety when I met the CFO & CEO at presentation meetings and was always waved off with "you dont know what you're talking about, the book is Completely Safe". Who's laughing now, you idiots! The reason why MacBank and Goldman financed this stock at $3 was that they have huge exposure to the gold book. Expect this story to keep on unravelling and get worse. Morals of the story is
1) dont hedge unless you are financing new production (where was SGW's?)
2) dont lie about your reserves (SGW's have mysteriously vanished)
3) dont rely on hedging as a profit centre. Mining management are there to Mine not Speculate on gold. SGW was MONSTROUSLY over hedged for their reserve base and declining production
4) Bankers are NOT there to be your friends - you are a source of income to them and if your company blows up because they have sold you a crap hedging strategy so be it.

At $1.30 a share SGW was still a crap stock - the assets were well and truly past it and frankly the tantalum was the only thing worth looking at. The gold assets are worthless and the gold book is a toxic waste dump.