RE: HedgingIt's the perception of the hedging not the transaction itself.
If you read my post I agree it is a reasonable decision in of itself/.
Nevertheless there are MANY investors that will not touch a miner that hedges.
It is seen as a betrayal by silver loyalists and fiat haters.
What is the first thing out of Hecla's mouth. "We are an unhedged producer,,,,,In fact we were bragging about it in our presentations before this
Do you know that the largest, most followed PM index is the HUI which was "Invented" to answer the XAU which included hedging companies? The HUI is made up of only unhedged producers.
Do you know that there are funds that mandate their investments to be unhedged ?? Because the prospectus calls for "pure plays"
AGAIN- our hedge is small, it is barely material but if you take two minutes to look at Leon's evidence it has to make one think.
What good does it do our company if we protect it somewhat on the downside if we are blacklisted by a block of investors as a HEDGER and it suppresses our stock price.
Take a moment and compare the 5 and 10 year HUI and XAU charts. The HUI blows the XAU away
Think about the POSSIBILITY of this blackballing our stock being true- are Leon's figures a fabrication?
Give the thought a chance.