Hedging Information, page-17

Hi Spec and flaming
spec no - i missed the question . What thread did you ask the qn RSG or Pru ?
Another thing to note is RSG have increased their bullion holdings to the end of March to the value of the 29m
USD , so I imagine some of this could be used to satisfy the AUD hedge. What I mean is selling that USD gold now will realise the equivalent AUD price offsetting the fact that some of this quarters production would be sold at a lower AUD price. They hold the Equiv of 46 m in AUD bullion. My guess is they will also have around 4-5k extra ounces poured from last quarter this quarter, and I estimate gold sales will be about 4-5k over what is produced. So the AUD hedges although impacting Margins I think will be less than simply looking at a straight margin loss / opportunity cost

As for the extra hedging at 1719 USD executed this quarter , yes I am aware of it and it takes the prod hedged to circa 25% for next 18 months and Pushes the average to over USD 1600. Every progressive hedge from this point will make average hedged price move higher and Locked in Margin substantial. Hedges that lock in 300 USD margins I am sure will be looked at very different from those the lock in 650-700 Margins