Ann: Quarterly Activities Report, page-8

Thankyou for the detailed reply.Thats a great summary of heging Ralphmouth!

Unfortunately there are two risks, one as you mentioned, the other if we go into hyperinflation.
Which, with all the money printing and neg interest rates, it is a distinct possibility.

RRL are going to have to take a massive hit on the 167,000oz @ $1450
Around $167,000,000, ouch!
Take this into the equation, right now RRL is not cheap.
In reality their production this year is only 200,000 ozs unhedged

From the latest quarter

Hedging
The Company delivered gold into a combination of spot deferred contracts and the prevailing
spot price during the March 2020 quarter. The total hedging position at the end of the March
quarter was 418,508 ounces, down from 428,510 ounces at the end of the December 2019
quarter, with an increase in the average delivery price from $1,617 per ounce at the end of
December to $1,620 per ounce at the end of the March 20 quarter. These hedges are all spot
deferred.
As previously noted, Regis’ current strategy is to deliver into the lowest priced contracts at the
rate of at least 10,000 ozs per quarter. The average price of gold sold by Regis for the reporting
period was $2,297/oz compared to the average spot price for the March quarter of $2,410/oz.
This quantifies the impact on revenue of delivering into the hedges at the rate noted for the
quarter was less than 5%.
This rate of delivering into the lowest priced contracts will continue to be assessed for
adjustment. Any changes to this rate will take into account a number of factors including
prevailing gold price outlooks, internal cash demands, capital expenditure requirements,
dividends and any changes to Company LOM production plans.