Kanmantoo Copper mine ready to go ? For real ?, page-75

I would much prefer that HGO did not hedge at these prices (~USD$3.70/lb) as the mine will still be operationally cash flow positive at even lower Cu prices so can then continue operations awaiting Cu price rise, and better opportunities for hedging some forward production if it then seems prudent.
Hedging now at these prices may dramatically increase the risk for HGO.
If HGO does not hedge and Cu price does not improve (or even softens quite a bit) then mine is profitable at a low level and all ok (but no new Mercs for us in near-medium term).
If HGO does not hedge and Cu price rises, then HGO is much more profitable than if it hedged.
If HGO hedges at current price and Cu price rises, and mining and production is slower and lower than expected (this happens rather a lot with underground mining), then HGO has a massive (company-threatening) problem when it does not have the Cu to deliver against it hedge contracts.