Ann: Change to Hedging Structure, page-15

Why refinance the hedges.

Existing hedges are as follows as far as I can work out.

As at 30/6/21
Price	Mid Price per oz	Closed/ (Opened)	OZ's	$
A$1,400 - $1,500	1450	80,000	78,000	113,100,000
A$1,500 - $1,600	1550		15,000	23,250,000
A$1,600 - $1,700	1650		36,000	59,400,000
A$1,700 - $1,800	1750		131,000	229,250,000
A$1,800 - $1,900	1850		60,000	111,000,000
A$2,600 - $2,700	2650	0	0	0
Avg hedge price	$1,675		320,000	536,000,000

This is taken from previous reports taken by the company.

Why would the company feel the need to close out, this when the gold price is rising and to lock in at such a low rate which appears to be below the average rate that the company would have got should they just have let them run off.

My calculations show that this has cost the company about $31,000,000 (320,000 x $100 per oz) and transferred another $31m to Macquarie bank just to rejig a hedge position and smooth earnings. What for?????

Happy to say I am wrong, if they can show the actual contract prices for each hedge contract. I can only use averages as the company doesn't supply actuals.

Very questionable decision by management, in my opinion.

DYOR

GLTA