Viewpoint > Russo-s-rules

Gold's insiders, and outsiders

Over the past four to five years there has been a stark and growing difference between the way in which Australian and North American gold mining companies sell their gold and manage the associated risks of having high and largely fixed costs, and often high debt, against a totally variable, market driven, revenue line.

Viewpoint > Russo-s-rules

Gold's insiders, and outsiders

Over the past four to five years there has been a stark and growing difference between the way in which Australian and North American gold mining companies sell their gold and manage the associated risks of having high and largely fixed costs, and often high debt, against a totally variable, market driven, revenue line.

Gold's insiders, and outsiders

In short, the vast majority of North American companies do absolutely nothing about gold price risk management. Indeed they generally promote being totally exposed to price volatility as a virtue. By comparison the number of Australian companies that have forward sold some amount of expected future production, and do so on a regular basis as part of their overall business planning, continues to grow.