RE:Impoortant to keep in mind. Makes me feel a little better!
Hedging details updated in Feb 18 :- "On September 11, 2017, the Company entered into forward gold sales contracts for a total of 131,000 ounces of gold with settlements commencing October 2017 through December 2018 at a gold price of $1,336 per ounce. During the fourth quarter, the Company subsequently amended these contracts to defer quarterly settlements by a quarter, and as a result, the contracts extend through the first quarter of 2019. In January 2018, the Company entered into additional forward gold sales contracts for a total of 56,500 ounces at a gold price of $1,350 per ounce, with various settlement dates between April 2019 to September 2019. As a result, the company now has forward gold sales contracts totaling 187,500 ounces of gold with settlement dates between January 2018 and September 2019, at prices between $1,336 per ounce to $1,350 per ounce, which are anticipated to represent less than 50 percent of production over that period. A key component of the financing plan for the Wahgnion Gold Project is the anticipated cash flows from Sabodala over the course of the construction period. The execution of the forward gold sales contracts provides greater cash flow certainty from Sabodala through to September 2019. Between June 18 and Sept 19 approx. 42% of productions is hedged at about $1340/oz. By my rough estimate, this means that even if the spot price drops to and remains at $1200/oz until Sept 19, TGZ will still be receiving an average price of close to $1270/oz. Of course it will be even better if the spot price stays above $1200/oz, even better if it rises, and not so good if it goes lower. No complaints from me about management's decisions.