hey Simon.

[john_1]

I have an Idea for a new course hat SFM might want to run... "why you should never invest in a gold share .....and why every newbie who loses money does not take this advice"

[SimonPB]

john, a thought that occured to me last night while listening to the ANG man talking about their results. part of the problem seems to be that the gold mines also try and trade the gold price. In that when price is up they ramp production and reduce hedges. When price is low they hedge like crazy and slash costs. and they are always behind the curve.

[john_1]

True that, and the price knows it. So as prodution ramps price falls.

[SimonPB]

an now sasol doing huge hedging as well.

[john_1]

they have always hedge a third are they doing more?

[SimonPB]

JOHANNESBURG, Aug 1 (Reuters) - Sasol Ltd , the world's top producer of liquids from gas (GTL), has hedged about 30 percent oil equivalent of its planned South African synthetic fuel production, it said on Friday.

Sasol said in a statement it hedged 16,425 million barrels of oil for the rest of the 2009 financial year, with downside protection, or put level, of $90 per barrel and a call level of $228 per barrel.

[john_1]

ya normal. it cost them but it is prob part of their funding agreement or somthing like that, you know how wise Bankers can be!