Fangk, My understanding is that a zero cost collar is when a put...

Fangk,
My understanding is that a zero cost collar is when a put and a call are made at the same time on the same quantity of gold, such that the cost of the put is offset by the price received for the call. When the collar is put in place, generally it is around the spot price at the time so for the 118000 oz hedge put in place last year, the spot price would have been around NZ$2050 at the time. Hope that helps.

It’s noteworthy that OGC have been hedging some quantum of NZ production since 2013 and have done pretty well out of it, until this year when the gold price took off. People put hedges in place with the best knowledge at the time (at the time, NZ $2050 was a record gold price for the prior 5-6 yrs). If we knew what the future gold price would be at any one time, we wouldn’t be wasting our time on this board DYOR,
Cheers and good luck,
Sully