Hedges are now c.A$2,400/oz out of the money.
There were 190,000oz hedged as per the recent BMO slide deck.
That equates to a negative mark-to-market of circa A$450m.
Let's assume new production profile is 15-20% below original plan, Macquarie will likely want 25-30% of the hedgebook retired. That could be a cost of between $110-130m to BGL. They might also want to trim the debt a little more as well.
Perhaps someone should put a call into Canaccord - given their 'relationship' with the BGL crew, they are bound to have the answer...
Add to My Watchlist
What is My Watchlist?
