Hi RWE1, just a personal opinion on your question on Hedging. I...

Hi RWE1, just a personal opinion on your question on Hedging. I have no view on hedging, other than one of my most successful investments in WA gold miners in the last 60 years finally collapsed due to hedging gone wrong. That said, clearly hedging has a place in mining, same as forward selling in a number of other industries including agriculture and a raft of commodity futures trading.
I see hedging in mining as simply a tool thats available for shorter term credit or security. I noted your comment of "Either they do it constantly or not at all" and if it were "constantly" (ie in regular pattern of attempting pick highs to sell gold) was the case, I would be more worried than it being used as I perceive it has been by BCN, mostly to have security for some particular known due payment. Bit like using the old "bird in the hand" known price of gold, to cover an upcoming payment, rather than being unsecured if the price of gold suddenly dives. I seem to remember one of BCN's hedges being taken out at a time of a known accumulated draw down on cash occurred, around a divi time, a mine purchase and plant draw down - IMO that was a good risk management exercise, as the price of gold at that time was known would cover the drawdown. I think another one was done to cover an unexpected opportunity for secure some attractive leases, and more recently, an opportunity to buy plant. This was not to speculate on the price of gold, but enter the hedge knowing at that price, the costs were all covered. I see no trouble with that, in fact good sound management.

There is one other thing that concerns me just a little looking to the future, and that was a post that mentioned some future underground mining of one of the purchased leases. That would concern me. Its one thing having tight management and following low grades in shallow dirt, but the costs of developing underground mines, then trying to get and keep on good geo interpretation and stay on higher grades underground is not for me. I'm happy to invest in small cap explorers now and again -, such as the Arunta area ATM, but once the drills start hitting heavy grades at depth, and the seagulls flock to start buying, I'll take my profits. Been burnt too many times by small caps trying to develop underground mines with limited capital....but thats just my experience, and not advice, as no doubt others have done well,,,but not me.
Enjoy your investing RWE & I hope good fortune comes your way...,