Let us hope that the quarterly will indeed provide LT...

Let us hope that the quarterly will indeed provide LT shareholders with solid consistent numbers. I dare not look back at all my hopeful posts from the last couple of years!

I do think however, that there might be another reason why our SP has held steady compared to many of the gold stocks, some of which have been absolutely hammered, i.e PRU from its highs of $4.00, to a low of $0.22 yesterday.

I think the hedge that PGI hold is now becoming a bit of a trade of sorts, as in, buyers know that if the POG drops massively, PGI will be well within its rights to fill the hedge, wipe of its debt and be sitting on a functioning gold producing plant while, lets be honest, the vast majority of gold stocks will simply go belly up due to their costs being so high.

I think the hedge still has approx 100k ounces to be filled, with a price of $1320, at current POG, sold, it would provide PGI with about $10.2 million, which of course, would not be enough to pay off the loan, but if gold does drop further, I mean really drop, the viability of filling the hedge becomes a reality. i.e, at $1000 US per ounce, we are looking at $32 million, at $900 US, we would have $42 million.

Anyway, I hope LTermers have a nice break and that we do indeed have a prosperous 2014.