RE:RE:RE:Conference CallI agee with Toroshto and thought the CC was good. What steps do you want the co. to take to protect against the falling gold price?
Are you seriously suggesting they should take out expensive hedges, which then crush the upside if and when gold rebounds? That's the last thing I want. The bullion banks are the only winners in that game.
If you think gold is only going one way, then why on earth invest here?
What management are doing, i.e. focussing on cost reduction and preserving/growing cash are exactly what I want them to do. There is nothing they can do about the price of gold.
I also noted that some analysts tried to push them to make specific forecasts about future costs/production. Quite rightly, management refused to do so yet (on the hoof), indicating that more specific guidance for 2015 will be given in the next update, when the results of Segala operations (amongst other things) are better known. Good for them.
Of course, Busta, you are right about the debt - and investors need to consider the EV, not just the market cap.
IMO the directors are doing the right things in the way they're running the business. The future and SP trajectory now hang on what the gold price does. Unfortunately, it looks pretty grim today.
Mark