Gold mining company Pan African Resources, which is completely unhedged except for the hedging of 27 000 oz of gold that will be produced next year from its upcoming Elikhulu tailings treatment project, views hedging with extreme caution. In response to Nedbank equity analyst Arnold van Graan, Pan African CEO Cobus Loots emphasised the company’s acute awareness of the potential dangers of hedging and pointed out that most shareholders invest in Pan African because of the overwhelming extent to which it gives unhedged exposure to the gold price. (Also watch attached Creamer Media video).
