Pan American Silver to eliminate silver and gold hedge contracts
The Company previously announced that it had entered into forward contracts for 5.3 million ounces of silver and 24,000 ounces of gold, at average prices of $20.43 per ounce of silver and $1,323 per ounce of gold, spread relatively equally over a period of 12 months. The amount of silver and gold under contract represented approximately 20% and 18% of the Company's forecasted 12-month silver and gold production, respectively.
Through accelerated physical metal delivery and straight repurchase, Pan American now intends to close all of these forward contracts before the end of the current year.
President and CEO, Geoff Burns commented on the Company's decision; "We decided to put the hedges in place as a short term tactical response, to reduce risk during a time of extreme price volatility. However, our action may have inadvertently sent the wrong message to the market and to our shareholders about our hedging philosophy and our view of the long term prospects for silver and gold."
Ted Butler pointed out the hedge position less than a month ago, and I just never had the chance to follow up with the company to see what the situation was. Fortunately there were other shareholders that were not as hesitant...and I'm sure that management got an earful about JPMorgan's price management scheme in silver while they were at it...and that has resulted in this change of heart.
Both ex-CEO Ross Beaty...and current President and CEO, Geoff Burns, are well aware of the fact that the precious metal prices are rigged seven ways to heaven by the U.S bullion banks. I told Ross Beaty that in his office about ten years ago, and he couldn't get rid of me fast enough. As a past president of The Silver Institute, Ross sold out to the dark side of The Force years ago...and it sounds like the current management is marching to the same drummer. All of the major precious metal companies are kept in line either by the World Gold Council or The Silver Institute.