where in their full year result coming out, page-5

Re Hedging:

Looks like they have initiated a "Zero Cost Collar", by

1. buying a PUT option with a strike price of $26,000
and
2. selling a CALL option with a strike price of $23,000

If the tin price drops then the PUT option would be exercised by MLX to sell tin at $26,000.

If the tin price rises, then the CALL option would be exercised by whoever bought it to buy tin from MLX at $23,000.

Having traded a few options before, this is my understanding of what they have done, the net result is below for October 08;

1. Tin < $23,000 --> sale price $26,000

2. Tin between $23,000 and $26,000 --> sale price ($49,000 - actual price)

3. Tin > $26,000 --> sale price $23,000

With the power of hindsight, this strategy should pay off nicely for MLX at the moment since the tin price has dropped, all they need to do is deliver on the 950T amount to make the transaction, bearing in mind that it is their choice to exercise it.

Regards