Interesting situation IMO...as far as I know they are not exposed to gold hedges and it is the copper hedge book they are closing out. One would ask why?
. Could it be that they are very bullish on the copper price? I assume this is the reason, which is why I am interested as an owner of several stocks with unhedged copper exposure. I imagine that as a part owner of a metals trading company, they would be very well placed to hold a view on the outlook for the price.
. Could it be that they want to give their metals trading company some turnover?...I hope this is not the reason.
. Could it be that they are anticipating more interruptions to their production at the Tritton mine where they declared force majeure once before? I hope not!
Anyway, I expect the price should do well after the close out as per a number of other miners who have done the same eg. Newcrest, Lihir. They have plenty of exposure to a increasing copper price, so bring it on!
regards DF
SRL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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