Hi Ducky.Lucky the UG wasn't debt funded or we could well have...

Hi Ducky.

Lucky the UG wasn't debt funded or we could well have had a big pile of hedging at $12,500 a tonne to manage the cu price risk for the lender to ensure the mine development costs during the ramp up and his interest and capital repayments were secured..

It seems 3,000 tonnes are hedged at $12,500 to make sure if the worst case forecast price event happened HGO could, with the aid of hedging, keep funding the ramp up without calling in the administrators.

3,000 t @ $2500 = $7.5m paid for life insurance at current prices. Looks like the Insurer is ahead but he probably isn't counting his chickens just yet.