re: huge sellers ... for george G'day George,I went on and on...

re: huge sellers ... for george G'day George,

I went on and on about hedging a month or so ago.

Oz gold mining companies have an international reputation as substantial hedgers.

I've read comments from a lot of HC experts on hedging - from "it's normal/ natural/ standard practice/it's covered by corresponding options" to "it's smart/useful/required/harmless/meaningless in the scheme of things".

While I appreciate these knowledgable folk mean well towards us all, I prefer to place my trust in Sinclair - who is also an expert. (While I don't have the source of the info readily available but could find it, I believe Sinclair turned one wager of US $20,000 into US$78,000,000 in the '87 (?) gold surge ... in fact it may even have been $178,000,000 - I drink a lot and the memory wavers).

Sinclair warns his readers that hedged companies will actually suffer, not just fail to make expected gains, should the POG suddenly take off.

I'm not aware of the extent of Lihir's hedging. I haven't chased it up because I'm not interested in LHG. I do know it, like most other Oz gold producers, is hedged.

The only Oz listed companies I believe to be unhedged (or substantially so) are DRD and SBM. I'm reasonably sure there must be one or two others - but I'm buggered if I can find them!

bye.dub