“In Australia, it is not only the US dollar price that is important but also the US$:A$ exchange rate… “This adds to the volatility of the gold price in Australian dollar terms.”
“The wild swings in gold prices over the last few months show that a degree of hedging provides some insurance against sudden price changes, especially for locally listed producers…This can be achieved through the sensible purchase of gold put options which give the purchaser the right, but not the obligation, to sell their gold at an agreed price.”
“At the risk of sounding repetitive, it is no surprise that gold production may fall when prices are high…Treating some lower grade stockpiled ore results in fewer ounces being produced, with a consequent rise in the cost per ounce of production. However, this is a sensible and rational means of optimising life-of-mine and profitability.”