I'm coming from the perspective that the point of the hedge is not to guarantee a margin on the hedge quantity, but to hedge out the entire cost base of operation at a full production profile (i.e. nil margin). So the revenue on 50,000t monthly at A$230/t is equal to the cost base of 110,000t monthly at A$105/t (or whatever the exact numbers are). The hedge ensure the project as a whole breaks even throughout the hedged period. With cost base covered, any supply above the hedged quantity is essentially pure profit so why curtail production?
Ann: Dividend/Distribution - FEX, page-65
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Last
30.5¢ |
Change
-0.010(3.17%) |
Mkt cap ! $211.8M | |||
| Open | High | Low | Value | Volume |
| 30.5¢ | 31.0¢ | 30.5¢ | $32.24K | 104.4K |
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| No. | Vol. | Price($) |
|---|---|---|
| 4 | 24389 | 30.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 31.0¢ | 30806 | 2 |
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| Last trade - 16.10pm 10/05/2024 (20 minute delay) ? |
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Last
30.5¢ |
Change
-0.010 ( 0.97 %) |
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| Open | High | Low | Volume | ||
| 30.5¢ | 31.0¢ | 30.5¢ | 106078 | ||
| Last updated 15.59pm 10/05/2024 ? | |||||
| FEX (ASX) Chart |