Replies to post #5588 on Caledonia Mining Corporation (CMCL)

[rmarc]

"The cost of the hedge is the price of the put. They will loose it all." The cost of the hedge is much greater than it's cost. The higher the gold price moves above $1250/oz, the more the share price will lag any gold rally. The hedge will result in lost earnings as the gold price moves higher & will be very negative for increased dividends.