Ann: Quarterly Activities Report, page-15

re. Hedging

Hedging strategy changed pre- June 2022 from "a set price" (which is relatively cheap to implement)
post-June 2022 to "keeping (majority) upside exposure" (more expensive to implement).

This change may have been triggered by substantial hedging losses (nearly USD$5m in the previous 2 quarters).
Basically they received a set price below the higher spot price.
It also coincides with ST entry and board appointment, but that may be pure coincidence.

I was pleased at the time to see this change in approach..

Should they Hedge
HZN has taken a prudent approach to protect cashflows required to fund commitments (development and loan repayment).
In the next 6 months they have to repay the loan in full (USD$9m) and fund 12-8-E development (USD$15.5m).

I have de-hedged my position using Brent CFDs. ASX Code OOO may be anther alternative..

What About the Future

They may stop hedging from post June 2022 as the need to protect cashflow to fund expenditure would be modest to mon-existant.
They may hedge to lock in a minimum distribution, but I doubt that they would do this.