currency hedging

I've looked over the annual report online and searched for places where the words "hedge", "hedging" and "hedg*" are used. Their are only two places, the first is on page 28 and has nothing to do with the currency hedging. THe second is on page 49 and shows that changes in the fair value of cash flow hedges increased by a little over $5 million.

There does, however, appear to be much more information in the 2008 Full Year Accounts and Concise Accounts that were released on 1st of October. Most of this detail is on page 68. It seems that TTY has forward exchange contracts (cash flow hedges) of about $73 million.

So, assuming that TTY hedged when the dollar was close to parity with the US dollar (I have no reason to assume this is the case) with a decrease of the AUD to 0.65 USD, then we are looking at a possible shortage in USD cashflow of US$25 million. This is a pretty serious sum of money. If TTY are unable to come to some sort of arrangement with the hedge issuer, then I would imagine there could be some hefty penalties. Perhaps this is why TTY is selling so much ore at the moment. Didn't they say that they had made 4 shipments of ore. I guess they need to do a lot of selling in $US to cover the shortfall. Hopefully they can cover the shortfall through increased sales volumes, after all they are in ramp-up mode.