BLK Fundamentals vs. others, page-4

@GravityWaves the difference between MOY and BLK is the board of MOY entered an horrific hedge for a significant amount of their production early 2019 just prior to gold breaking out. Even in the September QTR the POG in AUD terms was already at $2,000 plus from July 19 onwards an ounce.
Unfortunately once that hedge was entered you can't simply just walk away from the obligation.

let's work the numbers just on September QTR onwards. $1,816 compared to say current $2,350, hmmm you do the figures on the bottom line. Even if we take an average over the period of September19 to date say $2,150 this is a huge difference in profitability. I think you have a real difficulty in understanding how an elevated increase in POG can make a huge difference to the bottom line of any gold producer. $2,150 less $1,816 = $334.

$334 x 26,800 ounces is Circa $9million in lost revenue alone. This doesn't even count all the lost revenue prior to September QTRly as the hedge was done in early 2019 as POG aud was well above $1,800's by early 2019.
This could be a significant contributor that killed them and the fact they did not have a large enough resource and reserves to even attract a possible CR as any future production would have only ever paid back debt only in mho at best.

See below extract from MOY's September QTRly.

"At 30 September 2019, the Company’s hedge book consisted of 26,800 ounces to be delivered over the period October 2019 – June 2020 at an average forward gold price of $1,816/oz. Septemberquarter cash and bullion movements are shown in Figure 2 below."