Why would anyone ASSUME the price of gold was going to stay up at $1700 or higher, without any hedging or anything, and then be forced into a relative "fire sale" of an asset, to maintain liquidity, when the price of gold did what can only be considered a reasonable correction? Is that not imprudent, or even reckless? Is that not stupid and giddy? Where does such management get off talking in an earnings conference call about how they "wished they would have hedged"? Is that not an infantile embarrassment, to be living in the past, in such a fashion?
My confidence level in this team is low. It is not the job of executives of gold mining companies to have a pie-in-the-sky attitude towards the gold price...and ours did. It couldn't go up forever....and they assumed it would. Granted, that was the attitude of many other gold mining CEO's, but still. Such attitudes are an embarrassment, and reflect, again, a profligate and imprudent strategic vision.
I agree with you LTF. The sector is run by a bunch of permabulls who all must be Austrian economists. I knew the sector in trouble when the POG failed to positively respond to QE3 in 2012 and last year only considered this sector for trades and special situations.
When gold rose to $1900, the talk on the street was it could go to $2500; $3000 and even $5000.
Neil who can't even forecast annual production properly could not be expected to have the foresight to hedge.
I don't know of many miners if any that hedged when gold was above $1700.
We won't see those kind of prices for quite a while.
No use in crying over spilled milk.
The way I see it, is one can either sell and take a tax loss or accumulate and lower your cost basis.
we won't see $1700 gold, until we do, very hard to say when, didn't think we would see gas under three bucks, or a painting sell for $150 million, the price for art is a free market, gas and gold aren't exactly free markets...
yeah, that last CC was a doozy, Neil could give lessons on what not to do, on the transcript of the call there was lots of discussion with an unnamed analyst, understandable, I wouldn't want to say my name either...