I'm coming from the perspective that the point of the hedge is not to guarantee a margin on the hedge quantity, but to hedge out the entire cost base of operation at a full production profile (i.e. nil margin). So the revenue on 50,000t monthly at A$230/t is equal to the cost base of 110,000t monthly at A$105/t (or whatever the exact numbers are). The hedge ensure the project as a whole breaks even throughout the hedged period. With cost base covered, any supply above the hedged quantity is essentially pure profit so why curtail production?
Ann: Dividend/Distribution - FEX, page-65
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Last
34.0¢ |
Change
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Mkt cap ! $236.1M | |||
| Open | High | Low | Value | Volume |
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| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Change
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| Open | High | Low | Volume | ||
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| Last updated 15.58pm 14/06/2024 ? | |||||
| FEX (ASX) Chart |