These hedges were more than likely the choosing of the company rather than any external influence. Its been a common practice by the miners to jump in with both feet without thinking and hedge for all their worth instead of hedging incrementally. These guys might know how to manage a gold mine but when it comes down to the financial side of things they've got no idea. Hedging 80k a year is basically just under a quarter of production which is livable considering 270k or so is at spot but the longer they drag it out the less damage is done to the balance sheet.
RRL Price at posting:
$4.64 Sentiment: None Disclosure: Held
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