RE: relieved-inconsequential zinc hedgeThe zinc hedge was Gill's call as I remember him alluding to doing something like that at the last AGM when he made the statement that they would never hedge copper but might hedge gold, zinc, or silver by-products to ensure a project's viability. The hedge in relation to Duck Pond is only for about half the mine's life and only for about 3/4 of what is produced during that short time. This hedge helped to GUARANTEE that Duck Pond would be a less than zero cents/pound producer for its life which, as noted yesterday, has allowed other miners in the area to plan on challening their production through AUR for processing and, in so doing, giving AUR another fair size revenue stream. Stick with the numbers:
Should AUR's selling price for copper (LME premium over spot for Grade A production included) in 2006 average the following you can expect (from Conf Call):
Copper price Earnings Cashflow NetCash in bank
$2.50 $2.64 $4+/share $5+/share
$3.00 $3.49 $5+/share $6+/share
$3.50 $4.34 $6+/share $7+/share
Subtract the NET cash NOW in the bank and it is trading at around 3 times cashflow. Find me a better bargain.