Ann: BMO Global Metals & Mining Conference Presentation, page-8

they have copper hedging in place at $4 , the current price is higher - why is that not as good as cash given they are formal contracts in place? the only issue is cash cost increasing that would chew away margin. There is no exposure to market forces and given the company is established, it is as good as cash. I'd be interested to hear why you dont think so

Fair point on the C1 cost figures - however my post is to highlight the overall investment hypothesis. If we were to go into detail, we would need to include the by-product credits which are significant and would make any EBIT figure much bigger.

The overall point however is even if we only consider the hedge, the company is incredibly discounted against the potential reward. This low risk, high reward equation makes the Sharpe ratio here very high and therefore should form a significant part of a diversified portfolio.