Kanmantoo Copper mine ready to go ? For real ?, page-76

There are so many possibilities.

Hopefully production dropping to < half whats expected isn't one of them.

There should have been enough drilling done before mining starts to allow Peter to get the grades right. If so and mined volume forecasts are too ambitious, I guess the cut off grade could drop to compensate and keep revenues up.

It appears that they are planning to hedge enough (50%) if the price is above $12,500 to cover forecast costs. Why ? Maybe to be super careful and follow the bird in the hand principle. Could be a case of ending up with one bird instead of two.

I wonder what plan B will be if the price drops below that hedging condition price.

Hedging into forecasts for strong rises in price does seem to be a risk too big to take rather than a good risk management idea

Have to accept that the Board and management are better at this than us.