your probably being too harsh on yourself bloke
it will come should you decide to have a better chop at it
Stocks, commodities prices go up and go down... picking the right entry and sale opportunity can be quite frustrating...
whats good for the goose is good for the gander ...
I must admit I looked as carefully at the p/e's as the % yearly gains. They are doing the yankee p/e ... looking too far forward discounting cyclones, fall in POG and idiot cousin being made CFO. It should be called pfe or p / effin /e .
I should have added that the other major van Eck ETF zgDSJ which is for the junior or smaller players, has not made any announcements on its changes.
Geez, those drugs still messin with my typing. FXJ above should read GDXJ
don't they ? even worse with modern phone ( and auto-correct
marketmatters.com.au
My thoughts exactly this morning on looking at overseas markets and ours on the open. MM highlights two important points.Market Matters this morning
/report/portfolio-positioning-mm-still-says-buy-the-dip-until-further-notice/Market Matters | Leading Australian Stock Market Views And Advice
Get the latest Australian stock market views from top investors with real money in the markets. ASX investment advice and share recommendations. Find out more.
"Gold ($US/oz)
Gold retreated again overnight taking ETFs down ~2% in the US, not a bad performance considering the sectors advance over recent years. Gold is following our playbook and consolidating its recent gains, and the question we’re now asking ourselves is whether we’ve already seen the majority of the washout. We are seeking opportunities to increase our gold exposure across the MM portfolios."
marketmatters.com.au
@rcw1good article and informative.Article appeared in the AFR electronic yesterday (10/08/25)
Miners abandon their gold hedges in the hope of bigger windfalls
Australia’s gold miners have turned their backs on the security of guaranteed sales for their bullion in favour of the spot market, underlining the overwhelmingly bullish sentiment sweeping the sector.
Global trade tensions, regional wars, economic uncertainty and central bank demand have galvanised support for gold, sending the precious metal 40 per cent higher over the past year to more than $5200 per ounce. The average cost for Australian companies to produce an ounce of gold is about $2100, resulting in big margins if miners sell their bullion on the open market.
However, when gold bulls are more scarce, some miners agree to sell some of their future production at guaranteed prices at an agreed date – a form of financial de-risking called hedging. Fewer hedging contracts mean that miners are confident the price will continue to rise, or at least remain high. “The only reason you got a hedge is that you think the gold price is going to go down, and that’s a negative signal to the market,” said Paul Howard, mining analyst at Canaccord Genuity.
Miners presenting last week at the Diggers & Dealers conference, a major resources sector event held in the gold capital of Kalgoorlie, all pointed to a shift away from hedging to take advantage of the buoyant price.
Northern Star Resources, for instance, has axed its mandatory hedging policy, while Westgold Resources managing director Wayne Bramwell has long touted his company’s rejection of forward contracts.
“The company is unhedged. Absolutely nothing. We hedged previously, and that cost us a lot of money. Our view is that our best hedge is to get our costs under control,” said Bramwell. “Most of these gold companies with international shareholders don’t want Australian miners to hedge. They want full exposure to the gold price. When you hedge, you’re taking a view [of the future gold price]. And does anyone really know where the gold price is going? I’ve got zero impact on the external gold price, but I can control our costs.”
Howard said the rejection of hedging suggested that miners were “signalling to the market that they’re gold bulls”.
“They’re signalling to the market: ‘We think this will be sustained for a long time. We don’t want to waste shareholders’ money or lose margin by hedging.”
According to the World Gold Council, hedging in the June quarter was down 7.1 per cent year-on-year, continuing a long-term trend. Global gold production in the quarter remained strong at 1249 tonnes, up 3 per cent.
“Hedging is expected to be minimal as producers opt for exposure to strong prices. A more material drop in prices, which is a possibility … could encourage some producers to lock in prices at the margin,” it said.
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Duncan Gibbs, managing director of Gold Road Resources, said: “Our philosophy around hedging was to do the minimum necessary. If you are drawing down debt, often it’s required by the banks, particularly if you are taking on higher levels of gearing.” “Gold Road has been unhedged for three or four years now. Hedging is about risk management, not about trying to predict the gold price,” said Gibbs, whose company recently agreed to be taken over by joint venture partner Gold Fields for $3.7 billion.
“Where you get caught is a run-up in the gold price in an inflationary environment. If you’ve locked in the gold price and your cost base is going up, it can squeeze your margins.”
Hedging can backfire if prices and costs move in the wrong direction, while some hedging is required to raise capital.
“Sometimes, it’s not [the company’s] decision to hedge. It’s the banks that are funding the debt for their project. It’s the bank protecting their money, so they put on a mandatory hedge. It guarantees them revenue in a changeable gold environment,” said Canaccord’s Howard.
A notable example is Bellevue Gold, a West Australian-based miner whose long-term hedging was caught out by soaring prices. Bellevue spent the bulk of a $156 million equity raise in April to escape from forward hedging contracts agreed for an average of $US2135 ($3270) per ounce.
Bellevue managing director Darren Stralow said the miner had contracts for 152,000 ounces of gold to be delivered over the next two years, but was pushing to close them out.
The hedges are held with Macquarie, a major lender to Bellevue. Stralow said its hedges were agreed years ago – well before gold’s recent bull run – to guarantee future revenue and to help the miner complete its eponymous mine.
“[The hedges were] to help us build up the mine and build up balance sheet strength,” he said.
An alternative to hedging is a put option, which gives companies the future choice to sell their gold at an agreed value regardless of the spot price. Unlike hedges, there is no obligation to sell.
Paul Cmrlec, managing director at Pantoro Gold, said put options were a cheaper and safer choice than hedges in a bullish gold environment.
“There’s still a massive risk in upside risk in the gold price, and you can go too far out with hedges,” he said, adding that it was possible to secure forward hedging contracts for $5500 an ounce.
“But if the price goes to $6000 an ounce, you’re in trouble.”
Please note rcw1 likes gold and everything associated with yellow
Kind regards
rcw1
marketmatters.com.au
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