Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Message: $900 tomorrow?
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Yep gold is down. Spot is currently $878 and near term futures $876. It doesn't look like $900 gold is going to happen today but then again it just opened in New York trading and spot gold is up $5 in the last hours :). My point on ARU maybe waiting is that there is tremendous volatility in gold right now. If we get locked into today prices we would be in a situation very similar to if we had hedged the upside out of our future production but still maintain the downside if prices fall.With production a minimum of 2+ years away we have no way of knowing what prices are going to do by then but I'm betting on them going up a lot. From the point we lock into a number we lose whatever upside potential there would be from the taxed amount of windfall (e.g. 70% of the gain). On the other hand you could be right and if gold isn't going to go over $800 in the long term then locking in today at $880 wouldn't hurt us and could accelerate the development stage.So maybe the $800 pundits are right and we do a deal as soon as possible or maybe the $2000 pundits are right and we delay setting the windfall tax as long as possible. I suspect that neither group really knows what is going to happen and hence the issue over setting a base price windfall taxation scheme.I'm in the camp that would like to see the mining taxation done via royalties and corporate taxation. If there is going to be a grab on 'windfalls' do it via some form of a graduated corporate tax scheme.

Time to catch a flight.

... Been There
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