gold. its simple, page-9

fishhead - it seems that in the same period you were on this thread spruiking SGX you were offloading some of your holding - yes? - just so we know where you are coming from.

mchawe - I know what you are saying but it is not as black and white as what you make out IMO.

Their CY07 financials are out and show that the Jinfeng project had forwards of about 330k at US$525 over the next 5 years and puts of about 150k at US$400. For CY08 they are predicting production of about 180k-190k with forwards for the year of about 74k (at US$525) and puts for the year also of about 74k (at US$400).

So you are correct that they are only get the full bang for about 30k of their gold production this coming calendar year.

Also in CY07 they funded much of their expansion through issuing more shares - a total of about 71m shares. This of course dilutes the value of existing shares.

My point is that I'm not sure what a growing resource company with no cashflow is supposed to do however. That is what Norton did to buy the paddington operation. For such companies it is either take the loan with the hedging conditions or lose the opportunity.

Sinogold obviously think now is the time to buy up opportunities but hopefully they will draw breath soon and save up some of their cashflow so as to buy out their hedges, similar to what Lihir has done. Peter Cassidy is a director of both Lihir and Sinogold and no doubt the SGX board will be looking to manage SX's hedging.