a point on hedging, page-2

With gold now US$1134 ADU's mark to market loss on its hedge book of 290,000 ounces at US$1075 is around $17.5 million.

Mangrove1, do you seriously suggest that if gold was US$1000 higher than the hedged amount and ADU had a mark to market loss on its hedge book of $290 million that all would be fine?

That if gold was US$2000 higher than the hedged amount and ADU had a mark to market loss on its hedge book of $580 million that all would be fine?

Due you know the fine print of ADU's loan agreement?

Without knowing it you do not not know whether or not ADU would be in breach of its finance facility.

And it's no retort to scoff at the much higher gold prices I have mentioned and say that won't happen so the possible mark to market losses on ADU's hedge book I have mentioned won't happen.

After all, isn't it normal if you invest in a gold company to want the gold price to soar?? Who invests in a gold company not wanting the gold price to soar?