Fog of war and mist of battle, on Friday I had SBGL finance.yahoo.com put to me, and called away from me, i sold some additional puts expiration July at substantial premium w/ strike price significantly below current market price, and I bought more SBGL at current price.
Net result is effectively I hold the same number of shares of SBGL as before, plus the new wallop i added, can now tally-in the option proceeds collected in the past as earnings, and positioned to earn more going out to July as time-decay works against my counterparty
Net-net result so far is ~1/4 of my SBGL hoard is ‘free’ at zero-cost. By July, hopefully the story continues to be supportive of palladium, and if not, SBGL’s platinum and gold takes up the slack, and if not, SBGL’s 50.1% ownership in DRD finance.yahoo.com pays dividend, given that listed company’s already high yield near 5% now, to rise w/ gold price, and with neither exploration nor mining risks (it just and only does retreatment of mining tailings), and only has processing risk. Everybody including environmental regulatory authorities know exactly how much of everything including residual gold is in tailings pond.
I do own DRD as a stand-alone core gold holdings. It is the gold ‘mining’ company that pays a substantially higher yield than almost all government bonds, backed by gold, in precisely-known amounts in the tailings pond. Collateral good. |
