There seems to be a lot of misunderstanding here. Some of it, - whether intended or not, - looks like ramping.
Hedges are not actually bad. They are simply insurance, nothing more or less. So if the price of silver collapsed to say $20, CCU would still receive the proceeds of selling at $28 or whatever the contracted price is. The bank is not concerned or involved in hedges, all they require is evidence of a viable contract of sale for a given quantity, usually a quantity that will be sufficient to repay them. As long as their loan covenants are covered the bank could care less about hedges.
The main problem for CCU and many other companies at present is the extremely negative market sentiment. So any negative news or downgrades is seized upon as an excuse to sell out. I see that somebody started a post implying that a capital raising may be necessary. It does not matter whether that is true or not, the seed is sown. There is absolutely no evidence that I have seen that would suggest a cap raising. Ian Lawrence has had the blowtorch applied and is probably shocked at the reaction of the market to what I think is a fairly innocuous announcement.
I don't see any major turnaround while the market is in such a grumpy mood.
CCU Price at posting:
34.9¢ Sentiment: Hold Disclosure: Held
