Add Klondex to the list of producers that is hedging their production for the year.

Forward Sales Contracts – In April 2016, entered into fixed forward spot trades covering 67,600 ounces of gold at an average price of $1,258 per ounce and 798,500 ounces of silver at an average price of $16.71 per ounce, both of which will be physically delivered into during the second, third, and fourth quarters of 2016

This is nearly their entire remaining production for the year.  I understand why these companies listed above are hedging.  They need the cash flows to build their future projects and in New Gold’s case especially, will be out of business if we turn back down to 1000$ gold if they don’t hedge.

One thing to think about here… HOW MANY GOLD PRODUCERS HAVE EVER HEDGED AT THE TOP?

short answer… none that I can think of… can’t these guys keep it in their pants for more than few months?

 

Stick with Rob McEwen.  No hedging… no streams… no debt.