re: huge sellers ... reason = hedge book Big Ears
The pieces you posted again highlight how deceptively a lot of these miners use information.
"Lihir’s strategy of hedging one-third of its production over a twelve-year horizon" . . . . leads one to interpret (at first inspection) that they have a yearly hedge of about 220k oz. But no, the true figure for the coming 2 years is more than double that per year !! The use of AVERAGING over a 12 year horizon is, imo, just statistical smoke & mirrors.
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"our intention is to roll out less favourably priced positions" can only be seen as delaying the inevitable, which we all know from experience doesn't solve a problem but usually makes it worse. . . . in this case it seems that they are betting that sometime out there in the "roll out" future, POG will return to say US$300 & the exchange rate will go back to say 0.50 !!!
Too big a bet for me . . . . . I rode LHG from low 80's to $1.18 on the grounds that sovereignty issues had impacted far to greatly on the share price, so I have nothing against the company as such . . . in fact I think it is a great business EXCEPT for its potential hedge time bomb
LHG
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