It was explained at the AGM, it is a contractual agreement with...

It was explained at the AGM, it is a contractual agreement with the Swiss Refiner with which PGI has the hedge, that no more hedging can take place when the

(number of ounces outstanding in the hedge * (the difference in the actual price with the hedge price)) exceeds $2.5m.

And that is how I understand it, at least, so I am quite happy to be corrected.

And as that is the case at the moment, no more hedging can take place for the next few weeks.

We can expect that after the next 10 weeks or thereabouts, the low priced part of the hedge will be gone.

Further BJ says it is prudent for a small company to have its production hedged, so once the opportunity arises, we can expect that PGI will be adding to its hedge.

Lets hope the gold price keeps heading north and PGI will be adding to its hedge with very high prices.


China is one thing, but approval for importation of high quality ore for the plant is now looking much stronger at the moment, with the government returned with a bigger majority, the gold price higher, and a very well respected DR engineer supporting the cause. I feel that this puts it very much in the forefront of PGI's thinking going forward.

Remember that this is where the big throughput plant is and will be much larger than what is planned for China at the moment.

And one more thing, looking at a more indirect indicator, quite a few of the top 20 shareholders have increased their shareholdings, in some instances, significantly over the last few weeks.

Fingers crossed.