I have a feeling this one will rally very significantly when gold stabilizes, even before a gold rally.
I spoke with investor relations today and she was very pleasant. Here are some details about Vista's hedging:
Expected Production for 1998, 1999:
115,000 ounces each year.
Hedged:
100,000 ounces each year.
Of those 100,000, 12,000 each year sold forward. The other 88,000 hedged with options.
I'm no futures trader, so some of the following is Greek to me, but she said the hedge was a "collared" hedge, with a window of $340-$360. She explained the hedging was designed to protect the company from below $340 gold price. However, the "collared" hedge allows the company the possibility of takign advantage of a gold price above $360. The company would not be able to take advantage of a gold price above $340 if the price was also $360 or below.
Sounds like some speculation, but overall strikes me as a saavy compnay that will survive.
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