metals are flying , page-19

Hi Fiendish .
Correct me if I am wrong ,but the way I understand it is that any hedged commodities are not reliant on actually selling the metal ,and therefore they will reap the full benefit from their hedging .Otherwise if the hedging went against them that would mean they dont have to pay the difference if they didnt produce enough to cover the amount hedged .As far as I know it is a paper transaction and doesnt rely on actually selling the physical metal.If hedging goes against you ,you pay the difference ,and vice versa
Management have said that mid November they would be up to full production and the tin price has been around $20,000 AUD average for a while.
So I would expect a small profit for the December quarter and the March quarter should be showing good profits .The big question will be their production costs ,but we wont really get a handle on that until the March quarterly , as they would have been still ramping up in the December quarter .