... political instability and inflation * Limited ability to adjust production with regards to changes in the price * Steady decline (on average) in market price since the early 80' * Need to make large fix or sunk cost in establishing mines and creating infrastructure 1.2. Comparison of ABX against industry competition * Marginal cost of production vary widely in industry (exhibit 3), compared to low marginal cost of ABX * Highest hedge ratio in industry (up to 95% against 80% of first follower-LAC Minerals) * Key strategy of ABX extraordinary growth in terms of revenue without taking too much risk (using extensive hedging to provide financial stability) compared to possible wealth maximization through extensive risk taking like Homestake Mining (HR 0%). * ABX fully hedge protected against price declines for three years and 20% - 25% for up to ten years * ABX continually reinvested large proportions of their profits in new mining activities * ABX fortune in ...

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