You said "again, the hedge book is only about 1/3 of production."
According to IAG 2007 2nd Qtr statements
12. COMMITMENTS AND CONTINGENCIES: (a) Gold sales commitments: On the acquisition of Cambior in November 2006, the Company assumed gold sales commitments of 56,420 ounces to be delivered in 2007 at $350 per ounce. The estimated fair value was recognized on the balance sheet and these commitments are treated as nonhedge instruments. As at June 30, 2007, the marked-to-market value of the remaining 22,311 ounces was $6,789 and the change in market value during the first six month period of 2007 was included in the earnings statement as a non-hedge derivative loss. On delivery of gold into the forward contracts, the related marked-to-market value is amortized and recorded into gold revenue. As of June 30, 2007, the remaining outstanding forward sales contracts acquired on acquisition of GGL (Mupane) were as follows: Year Forward Sales (oz) Average Forward Price ($/oz) 2007 38,888 403 2008 77,776 402 2009 43,888 407 Total 160,552 404 *********** The big boys are just toying with you! Hang on - it'll be a wild ride