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?
I'm coming from the perspective that the point of the hedge is...
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Last
32.0¢ |
Change
0.005(1.59%) |
Mkt cap ! $222.2M | |||
| Open | High | Low | Value | Volume |
| 31.5¢ | 32.0¢ | 31.5¢ | $170.3K | 536.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 253968 | 31.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 32.0¢ | 279809 | 7 |
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| Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
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Last
32.0¢ |
Change
0.005 ( 0.79 %) |
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| Open | High | Low | Volume | ||
| 31.5¢ | 32.0¢ | 31.5¢ | 238762 | ||
| Last updated 15.28pm 24/05/2024 ? | |||||
| FEX (ASX) Chart |