Super Pit ... Super Smart ???, page-128

"...Saracen Mineral Holdings did publish its ugly hedge book. SAR produced 96.3k ounces of gold in Q3’19, but 80.0k of that was delivered to close out hedges at an average price of A$1863 per ounce. That translates into US$1278, 13% below Q3’s US$1474 average gold price! That robbed SAR shareholders of almost all their due gains.
SAR’s hedgebook continues out for the coming 12 quarters, with the next 4 committing 51.0k ounces at A$1866, 47.0k at A$1859, 48.5k at A$1809, and 45.0k ounces at A$1827. That means SAR will have to sell about half its production at US$1280, US$1275, US$1240, and US$1253 over the next 4 quarters. That is assuming Q3’19’s average exchange rates persist. Hedging locks in big losses during gold-bull uplegs!
So with gold powering higher again after that several-year hiatus, it is more important than ever to look into the hedgebooks of any gold miner you are interested in. Hedging sells away gold’s future upside potential, and is incredibly irresponsible. Gold-miner shareholders own these stocks because they want to ride gold’s bull higher. Managements that choose to materially hedge destroy that, avoid them like the plague!"
http://www.zealllc.com/2019/gmq319fn.htm