These contracts were announced on the 24th Feb, the CAD Gold price at that time was around CAD2100/oz.
The strike was CAD2050 and expiry Apr2021 to Dec22.
SBM inherited from Atlantic previously sold out of the money forward sale hedges which were restructured into these calls.
Either very expensive or pretty special CFO who could convince a bank to turn that winning forward sale position into a losing sold call right that they give away to SBM.
A gold producer owning the right to buy more gold (derivative product of course) rather than locking it their sale price by selling a call would be highly unusual.
Regardless, considering the magnitude difference here. 78,000oz * CAD~400/oz = CAD31.2m. (current CAD gold price is ~400 higher than strike give or take).
So if SBM own the option they are CAD31.2m better off or if they sold it they are CAD31.2m worse off.
CAD62.4m turnaround. The company should be clearer in how it has presented that is for sure.
Ann: Presentation to JP Morgan Australian Virtual Gold Meetings, page-6
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Last
33.5¢ |
Change
-0.005(1.47%) |
Mkt cap ! $274.1M | |||
| Open | High | Low | Value | Volume |
| 33.5¢ | 33.8¢ | 32.5¢ | $494.1K | 1.483M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 107122 | 33.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 33.5¢ | 82939 | 3 |
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| Last trade - 16.10pm 09/10/2024 (20 minute delay) ? |
| SBM (ASX) Chart |