of the hedging I see that approx 100K ounces are spot deferred...

of the hedging I see that approx 100K ounces are spot deferred which means they have alot of flexibility to participate in higher prices and defer delivery at the lower price.

Current date for delivery is within one year of Dec 2014. But this can be extended with notice hence the name spot defer ed.

The other 168K ounces are Flat forward. most of it for delivery between 1-5 years from Dec2014

Agree the quarterly will be less attractive than previous periods but still with their estimate of 65K ounces fro march qtr and cash costs of between 940-990 AUD per ounce they are still raking in nett cash flow of about 30 million before overheads & admin & exploration.

Looking at last qterly this looked like 3.5 million AUD so it implies their cash would grow by that amount and it assumes no investments or repayment of loans.

They are predicting 75K ounces for June with cash costs between 810-860 AUD this would add another 45 Million less exploration admin etc so say 40 Million .

It would imply Cash pile by end of the FY of about 90 Million. A dividend of 3 cents would cost them about 15 million.

Seems reasonable risk reward to me at these prices.