The Fortis Hedging and Financial Gold Report
Before you buy a gold miner, check this report to see its hedge position... it's a very important factor in projecting cash flows going forward. In general, companies have been scrambing to buy their way out of hedge positions, but some have done better than others. Barrick Gold, for example, has a large hedge position at extremely unfavorable prices compared to most competitors. As I pointed out in a January post, Barrick execs sold massive quantities of company stock recently, and this left me wondering why. I now suspect it could have something to do with these unfavorable hedge positions.
Here's the Fortis report:
I was disappointed to see IAMGold had quite a hedge position... I am long that stock, but will be watching their hedge position going forward.