Inverter,
the hedging is in two parts. The first is the hedged gold whereby RRL has locked in the price to sell produced oz at a set price, thus creating some certainty for the business.
The 50k call option provides protection for RRL if they fail to produce the oz for their hedge. Smart and relatively cheap protection IMO.
To say 'leave hedging to the experts' is, IMO, naive. Gold is very manipulated in price and why would a miner want to be beholden to the whims of the bullion and central banks and the BIS.
Tough day for holders. I used to hold but am happy I stuck to my hard learned lesson of bailing at the first sign of trouble (in this case when the flood news first surfaced).
Could be a reentry opportunity down the track when the SP stabilises.
cheers
john
update on flooding, page-75
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Last
$1.61 |
Change
0.013(0.78%) |
Mkt cap ! $1.208B | |||
| Open | High | Low | Value | Volume |
| $1.61 | $1.62 | $1.59 | $1.840M | 1.148M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 20 | 23650 | $1.61 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.61 | 97389 | 33 |
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| Last trade - 15.01pm 12/08/2024 (20 minute delay) ? |
| RRL (ASX) Chart |