Thanks for your email. I have fielded a few emails from retail...

Thanks for your email. I have fielded a few emails from retail investors but it would be a stretch to say I have been inundated on this.



As I am sure you know, while we do have some hedging in place, our hedging and reserve position in no way resembles that apparently held by SoG. Our published reserves stand at 20.4 million ounces at present and only 10% of those published reserves are hedged in accordance with Board policy to this effect. This is in comparison with SoG who, from published accounts, had very high levels of hedging and far lower reserves which they appear to be revising downwards. In addition, our hedge book (which is included in each of our quarterly reports) is simple and contains neither margin calls nor currency hedging. Of our forward annual production over the next 5 years, between 30 and 60% is hedged with no hedging extending beyond that period. We have been rolling out hedges over the past 4 or so quarters to take advantage of higher spot prices. There is nothing to suggest that this process will not be able to be continued in the event it makes commercial sense for us to do so. Alternatively, our production profile will readily accommodate meeting these hedge obligations should we elect to do so.



I hope this deals with any concerns you or your clients may have.



Kind regards

Mark