The focus of the case is on techniques for hedging gold production. The primary strategy is min/max strategy using over-the-counter gold option contracts. The recent gold price increase from a low of $360 within the year, to a current price of over $394 was making the roll-over decision that much more difficult than if prices had remained stable. The hedging decision involves the quantity of hedges to initiate, the timing of the moves, and the medium .....more

The focus of the case is on submitting a bid for $11 million of Sceptre Resources Ltd. debentures. The seller had originally received the debentures as part of a work-out agreement after Sceptre took over Oakwood Petroleum in a highly leveraged transaction. The debenture seemed to be the first true "junk" bond issue in Canada - the issue had absolutely no covenants protecting the holder. Sceptre had two other outstanding listed securities, .....more