production funding in june, page-21

Actually Justbee, if a company hedges with a commitment to deliver x amount of ounces at a specific dollar price for x number of years, (by far the worst form of hedging) the company doesn't have good profits if the gold price rises significantly above the hedged price.

In fact the company has substantial mark to market losses due to the its future libilities and losses on its hedge book and as a result can even be in breach of its loan agreement with its financiers.