re: why - ncm down ? I see everyone saying LHG is lightly hedged at only 15%.
Is this 15% of its resources? LHG will be mining for many years to come. Does this mean that LHG has effectively hedged all of its production out for at least the next few years and does not stand to benefit greatly from a rise in the POG?
Have a look at Sipa (SRI). A tiddler compared with LHG I'll admit.
They will produce about 100,000 ounces over the next year and a half from their Waugh deposit. 27,000 ounces is forward sold at Aust $615/ounce, which is a bit below the current POG at approx Aust$650/ounce. Not sure at what prices SGW, NCM or LHG have hedged/sold forward at. Probably at far lower levels than this.
Sipa will also have a capital return of 5c/share....2.5c in April and another 2.5c later in the year. Currently $9.3m in cash with the Waugh deposit expected to generate a further cash surplus of approximately $20m over the next 18 months. Mining of the high grade deposits from Waugh stated to commence in January.
LHG
unknown
