South African Gold Miners Mull Hedging

http://www.businessday.co.za/articles/Content.aspx?id=169375

Hedging your production now will probably destory your business if the gold price continues to climb.

Lakeshore Gold Posts Loss

This one company was trading at $4 and could do no wrong, despite the fact that grade controls were clearly atrocious.

Sprott lends 70m. to Lakeshore. We have seen this before. Lending of this sort does not favour the miner or its shareholders. How much free cash flow will be returned to the shareholder? Zero.

stockwatch.com

Marketwatch Article

“…keep your gold shares. They’re solid companies. They’ve been disappointing but we believe our patience will be awarded as [their] time is coming.”

So which gold shares exactly are really solid companies?

http://www.marketwatch.com/story/china-buying-gold-2012-04-12