Hey miningnut - with the accounting, you have to remember there...

Hey miningnut - with the accounting, you have to remember there are two key factors in the size of the derivative liability - price and OUNCES. Thus, even if the New Zealand gold price was the same price on December 31, 2010, what do you think the liability would be....ZERO!!! Thus, as ounces are delivered on the derivative contracts, the liability shrinks all else equal. In order to reduce a liability in accounting, there has to be a credit to the income statement. In the first quarter, I estimate about 26k ounces delivered, that shrinks the liability. And yes, this is offset by an increase in the NZ gold price. But over time even an escalating gold price can't continue to maintain the size of the liability as the hedged ounces continues on its trek to zero at the end of 2010. Either way, the balance sheet is improving in a couple of ways. As OGC pays down its facilities, and as they deliver ounces under the hedges. Of course, I rather see a high gold price, take the non-cash charges, and increase cash flow. But, accounting is accounting, and my assessment is correct.