RE:RE:RE:Did anyone notice the change in hedging for 2024?The original hedge never mentioned anything under $2K in 2024 Kegman because it likely didn't exist then or at least didn't exist as of September 30th, 2023. The title does say "Hedging Information as at September 30th, 2023" so who knows exactly when they made the deal for the changes to the 2024 Forward Sales. Here's what was in the November presentation on page 18 (copied and pasted here):
Hedging Information at September 30, 2023
Gold – Forward Sales
•4,500 ozs/month for Q4 2023 −avg. Forward price = $1,887/oz
•2,500 ozs/month for Jan –Sept 2024 −avg. Forward price = $2,074/oz
•9 month 2023 actual gold hedge loss = C$2.0 million
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Here's what's in the January presentation on page 20:
Hedging Information Metal – Gold Forward Sales • Q4 2023 = 13,500 ozs • 4,500 oz/month @ US$1,887/oz
• 2024 = 34,500 ozs • 2,500 oz/month
@ US$1,982/oz for Q1 • 2,500 oz/month
@ US$2,120/oz for Q2 & Q3 • 1,000 oz/month
@ US$2,025/oz for full year _____________________________________________________________
It appears that VGCX management likely agreed to a lower $1982/oz Q1 hedge and the $2025 full year hedge on the 1000 ounces p/month in order to get the $2120 Q2 and Q3 hedge. At the end of the day it's the average hedge price for 2024 that I'm interested in and $2060 p/ounce average in the first 9 months of 2024 and $2057 average for the full year seems reasonable to me.
I disagree with your comment that JM needs to read the tea leaves and vacate. JM holds 872,000 shares worth about $5.5 million as of today's share price and if you think he doesn't have a vested interest in seeing VGCX share price get back to the $15 to $20 range and his shares worth 2 to 3 times what they are today then perhaps you have a different perspective of human nature than do I.
I've said this before on this forum and I'll say it again, the last thing we need is some new guy CEO coming in and destroying this company so their friends can come in and take this thing out for cheap. As long as JM is around, I highly doubt he will let that happen. I know you're looking for $8 to $10 bucks soon to get out of VGCX but I'm looking for at least double that and I expect JM is as well. If I have to wait another year or two, I can afford to wait and I plan to. Patience is needed at this point and as long as I keep seeing progress I can wait. I'm not day trading VGCX so I'm less concerned about the day to day price movements. GMT Capital with 9.9% of VGCX and Sprott with 6.9% of VGCX are still here because they don't see value.
Most of the gold stocks are out of favour right now because investors are waiting for the FED to start lowering interest rates so gold can move up and every time it looks like there's a chance that they'll begin lowering rates the narrative changes and lowering rates is delayed. Newmont Corp (NGT-TSX), the largest gold miner in the world is trading at /near 5 year lows. Same with Barrick, etc yet these guys keep making new acquisitions. Even GMT Capital (our largest shareholder) is still buying gold shares. GMT just bought another 63 million shares of Argonaut Gold (AR-TSX) for .38 cents a share through a prospectus offering so the big guys aren't shying away from gold investments, they're acquiring.
The BRICS are working hard to move away from the US dollar and are using their own currencies and gold as an alternative to doing business is US dollars. Given the turmoil in the world today, I suspect gold isn't going away anytime soon and demand is likely to increase in the coming years and the big boys (Newmont, Barrick, etc) know it. And if anyone thinks the price of gold isn't intentionally being held down by the US to counter the BRICS success using gold as a currency, well then they're just not paying attention to geopolitics and economics.
My opinion only.
HB77