hedging

I spoke to the Investor relations consultant in New York today.

I am satisfied that the company is undertaking the most prudent measures to maximise cash flow, expand production and maximise profit. It would take catastrophic changes to affect the likelihood of the company moving into strong profit mode over the next two or three years. By delaying the hedging the company should ensure the maximum benefit from an annual or biannual increase in the gold price. Should the gold price increase beyond $1200 per ounce the company has its own built in hedge fund as it hedges 33% of its expected production this year and a lower percentage as production continues to increase. The major risk is a fall of the gold price below $NZ770.