small article the australian

GOLD may have closed at $US922 an ounce on Friday but that doesn't bullet-proof smaller producers, as the View calamity shows.

Two things must always be kept in mind when buying into gold stocks. One is hedging, which is not always avoidable if a company needs to raise money. But the best thing in the present climate is to be fully exposed to the spot, our most recent example being North Queensland Metals at its Pajingo mine. Subsequent to our report on this last week, NQM has raised $7.5 million through a share placement.