#Gold Hedging is back, in Q1 amount hedged is >2.5x am't hedged in all of 2015

Exhibit 1: Global gold producer hedging/de-hedging in tonnes  Source: Metal Focus, J.P. Morgan Commodities Research  The return of gold hedging With gold prices rallying over 20% since the end of last year, a fast-growing number of gold mining companies have been locking in profit margins through hedging.  In 1Q16, gold producers hedged almost 2.6 million ounces (79.6 tonnes) of their future gold production, by our estimates (Exhibit 1). This compares to 28 tonnes hedged in 2015 and 116 tonnes in all of 2014 (Exhibit 2). The move back towards hedging has been broad-based with producers from Australia, Canada, Russia and Africa hedging through a combination of forward contracts and zero-cost collars.    Exhibit 2: Global gold producer hedging/de-hedging Tonnes     Source: GFMS, Metal Focus, J.P. Morgan Commodities Research