Hi SS I read that part of the thread, it seems the hedge book is closed, so my question was more about finding info going forward and what percentage will be locked in if they do Also, what do you reckon (or anyone else for that matter) about my other question on the two mines? Cheers Alfie
It would be a good thing if SLR hedged 6-12 months worth of production of gold at $1450/oz. IMO. It wold help calm shareholders a little and help them produce gold at a profit for a while if gold falls lower in the short term. A question about hedging for you guys: Lets say a company had 2 million ounces of gold and they hedged 1 million ounces at $1400/oz and they were producing 1 million ounces per year. And the current price of gold is $1400/oz. Lets say gold falls below and stays below $1400/oz for 6 months.. The company would then have sold 500,000 ounces at $1400/oz, leaving them with 500,000 ounces hedged at $1400/oz and 1 million ounces unhedged. Then gold goes to $1500/oz. Would they still have to sell the next 500,000 ounces for $1400/oz or could they start selling them at market price, leaving the 500,000 hedged ounces for if gold goes lower again? Never mind.. I think I answered my own question. From the above article: "A hedging gold mine makes private deals with bankers to sell the gold it will mine in the future at a fixed price regardless of whether the actual gold price in the future turns out to be higher or lower than the agreed upon contractual price."
The time to buy was in the 60s You missed a 30%+ move and increased your risk of short term loss. As ive said before - TRANCHES split you money up and spread the risk over a few tranches.
remember we are in the US summer doldrums now - so might be a relief rally but still be smart. Some is better none, but dont go all in. The best buys at the moment seem to be Para Mining Stocks (supplying drilling sevices etc - nibble) Material Producers (mid-cap mining stocks who are still in profit - invest) Energy Stocks (maybe not yet but soon - get your shopping list together) As always DYODD and pick very very carefully - dont use your emotions - If you havent done any reasearch and you like a company its probably because you have heard it spoken well of. THATS NOT DUE DILIGENCE!
Granted, I was O/S on holidays just got back 3 days ago so missed not only the 60's, but 70's and 80's too! I'm hoping to see a profit take dip on SLR and try for another slice, so powders dry
I actually like this stock although I haven't really been active in this thread with SLR down 70% in the past year and a P/E ratio under 10 it's looking quite nice. I still think if things start to turn sour in Japan/China further downside risk could be seen in silver and we may be yet to see the bottom for this stock however I do see potential for a explosion in the price of this stock if we see rampant speculation in the silver market like a few years back. I see a similar story for most the gold/silver producers who have been hammered in price of late.
.87c down 6.45% looks like profit taking amongst a mixed day in the gold stocks. NCM is getting a right flogging, down another 6.9% today, they carry a fair bit of debt too, hoping they turn soon for all the holders Cheers Alfie
SLR hovering around the 80c mark, dropped to 78c during the morning, bad day overall AXS down 108 points Maybe it could retrace further for another slice Powders dry
I got nervous and got out this morning at .81 will watch and see what develops, spew'n I didn't get out two weeks ago when it was .93
KCN - 1.13 SLR - wont break below 60c i dont think NCM - might be bad EVN - maybe as low as 0.58-60 just my opinion
I've lost that much money I don't give a sh*t anymore. Im actually excited to see just how much everything falls tomorrow. The next quarterly report should bring SLR higher if gold stays above $1400 au. ( I hope :| )
the USD targets I have been watching for are 1280 gold 19.70 silver I think this is the last move down - I really do The timing is right, some very experienced market commentators who I subscrbe to have been expecting this.
Looks like those targets have been triggered SS The only company I would look at buying in this environment is SLR Every investment vehicle ATM looks shocking, who would have thought that holding the very thing that is causing all this (via QE) is the best of the bunch...US currency, or am I seeing this wrongly?
