My understanding of how hedges work....
At the time the 125,000 ozs were hedged Macquarie (or whoever) short sold that amount (which immediately offsets Mac's exposure). CAI has to supply that gold to cover the short sale. There is an interest component built into the hedge agreement (since CAI has effectively borrowed 125,000 ozs to secure the debt with Mac).
Rolling the hedge forward (or some % of it) can be done but there will be a financial penalty involved... preferable is renegotiating the payment schedule with Mac.
- Forums
- ASX - By Stock
- Ann: New Large High-Grade Satellite Deposits to Feed Warrawoona
My understanding of how hedges work.... At the time the 125,000...
-
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CAI (ASX) to my watchlist
(20min delay)
|
|||||
Last
11.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $93.67M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
MTL
Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus
AVH
Avita boosts skin restoration product portfolio with 'dermal matrix' – a kind of next-level gauze made of fake skin
STX
Strike hands $48.5M contract to Clarke Energy to produce 20x 4.5MW gas engines for Sth Erregulla
CAI (ASX) Chart |
Day chart unavailable