Ann: OceanaGold Full Year 2019 Results Presentation, page-4

Looking at the "hedging" program here and the option "strategy" from what I can see is that at the end of 2018 there were a total of 169,200 ounces optioned with more than likely half on puts and the other half on calls.
These options expired in December last year.
So with that in mind and presuming that the options ran the full time frame into December we have a NZ gold price of around $2,236
Now the strike price of the calls that were sold were $2,000 NZ dollars (when you sell a call you have to pay anything above $2000 to the buyer of the call at expiry or whenever the calls are bought back and the buyer of the call option walks away and loses his investment if the option price is below the $2000 strike price at expiry.These are the basics.there is "premium" involved but we'll keep it as simple as possible.
Now when you take the NZ gold price of $2236 at the option expiry date and subtract that from the 2000 strike price we get a deficit of $236 NZ dollars per ounce.
Now when you consider that there were 84600 sold calls then you multiply that number by 236 to come up with to come up with a cost deficit of $236 x 84600 which amounts to a total of very close to 20 million NZ dollars.
Then you add the cost of the 84,600 put options struck at an average of $1.813 which expired totally worthless (they wouldn't have been cheap) and the cost of the so called "hedge program" continues to rise.
Now we come to last year where these guys continued with their lunacy by resorting to the same strategy as the year before. We have 118,800 options outstanding (from last year) which expire in December this year.
So if we divide that number by 2 (half puts, half calls) we get 59,400 .We have a call strike price of $2100 NZ dollars and with a NZ gold price of (at this stage) $2550 so their calls are already $450 per oz out of the money which at this point is 450 x 59,400 = $26,700,000 NZ give or take.And of course the puts are worthless at this point and will more than likely remain so.
So the NZ revenue base has been severely restricted and the $40 million for Dipidio is in $US
This is back of the envelope stuff as I don't have all the relevant info but I doubt its that far off.
This is not a hedging strategy this is a pure gamble that the gold price would not rise past $2000 NZ dollars for 2019 and $2100 for this year.
So it will remain to be seen were we end the year at.
I wouldn't believe a word coming out of this company unless I knew it as fact.