Can anyone please translate the following for me? From the last quarterly... Im sure the very clever could almost work out a realised price on close to half their production this quarter?!?
"At the date of this report, Atlas held swaps for approximately 0.96m wmt of future sales over the
period April to July 17 at an average 62% Fe equivalent level of A$94dmt. Additionally Atlas has collars
comprising some 0.62m wmt of put options with an average price of US$66/dmt (basis 62% Fe) and
some 0.31m wmt of call options at an price of US$82/dmt (basis 62% Fe)."
Expect next proper announcement mid July... but I think the above will be quite relevant to it's profit. They produce 3.2wmt last quarter and it appears they have 0.96wmt locked in at $94AUD.
Im guessing the 0.62m of put options will come into play giving them an additional 0.62m wmt at $66 (given IO price around $55 now), and the 0.31 call options might be worthless?
But Im just guessing, can anyone shed any light? From my reckoning, they look to have downside risk fairly well covered for this quarter however, and these instruments are going to work out quite nicely for them? Albeit only for this quarter?
Apologies if this has already been covered.
Cheers
