For those interested in MCR and the hedging in place I have just received this email update.
Regards Cobby
Dear Mr XXX, (I always wanted to be a Vin Diesel type)
Mincor receives payment for its nickel in US$. As Mincor's profits are reported in A$, and as most of Mincor's costs are incurred in A$, the rise in the A$ does have a negative effect. However to date this has been more than offset by the strong nickel price.
Hedging is due to finish at the end of January 2004. After this, Mincor will be exposed to spot nickel pricing. WMC does not set any price under the off-take agreement. Being exposed to the spot nickel price will lift the revenue that Mincor receives for every tonne of payable nickel from the hedged price (just under A$11,000/tonnne) to the spot price (currently just over A$20,000/t). In other words, our revenue will almost double, for the approximately 60% of production for which hedging will have just ended (the other approximately 40% was always exposed to the spot price).
Thank you for your enquiry about Mincor Resources NL and if I can be of further assistance, please don't hesitate to contact me.
Kind regards,
MCR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
