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$4.69 saracen mineral holdings limited

Ann: Corporate Presentation, page-24

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slange

10,768 Posts.

4332

16/09/19

07:10

Post #: 40430583
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Originally posted by Exised: ↑

how is the hedge underwater when the production cost is below the hedge? As long as a miner makes $$ on the sale of their product all is good. Yes they are not making the same $$ as they would have as POG spiked above hedge price but then same is true if POG crashed below hedge price. In such a scenario the offtake company will be obligated to buy the gold at the hedge price even though POG is considerably lower.

The only time a hedge is underwater is if a company cannot deliver the oz pledged on the hedge. If that happens a company will need to buy the Oz in the market to cover.

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Give it up mate you have no idea what you are talking about.
The hedge is under water simply because they sold gold forward at a price that is below the current price. That"s it.Full stop.

SAR Price at posting: $3.33 Sentiment: None Disclosure: Not Held
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