market cap, page-31

Lord Spesh, for years hedging has ripped off gold companies while limiting the upside in gold and at the same time providing cheap gold to the counter party.

In a rising gold price environment any company that hedges these days risks looking very stupid with a decision that could cost hundreds of millions of dollars in lost revenue.

Compared to price rises of most other assets and compared to wages growth over the last 25 years and compared to
the amount of US dollars in circulation gold is still absurdly cheap and has a long way to go yet.

Commmit to deliver just 100,000 ounces and if the gold price rises only $500 dollars there's $50 million in lost revenue.