Wheels Group Inc GRFJF

wgi''s production pegged at 801$

[lancealoz8]

the company has hedged its 2008 production at 800$.It is therefore not receiving the current price for its first 155000 ounces.Is there any exception to this hedge...I don't think so.It explains the relatie lck of response to gldprice increase.

[SkyeCairns]

Posted by: lancealoz8 (ID#: 3126723) Original Message: "the company has hedged its 2008 production at 800$." The hedge doesn't come into play until July 2008 and is based on only 40% of its production. The disconnect between WGI's SP and POG I believe results from two events: 1. When equity fall alot like on Friday some long holders of WGI need to sell to cover their

[lancealoz8]

I hope you won't be wrong...after all nobody can maintain a 1000 batting average!thanks for the comments.Lz8

[brulesca]

THe company only has 66,000 ounces hedged and only starting in July 2008 See below from the last company presentation 66,000 ounces annually –approximately 100,000 ounces of annual production remain leveraged to gold price –5,500 ounces per month July 2008–December 2014