Some info regarding so called gold hedges on this company. As of...

Some info regarding so called gold hedges on this company.
As of June 30 2019 a total of 203,400 ounces were "hedged" to cover NZ operations.
Now OGC have done this through options and they've bought puts with strike prices ranging from $1810 to $2000.
When you buy the put all you do is pay the price of said put and if it closes lower than the strike price you make some money (depending on the paid price of the put) Simple hedge, straight forward.
Now, a number of those options are sold gold call options and as there is no distinction given as to the numbers of puts or calls I would hazard a guess that they are equal in number.
Sold call options are a whole different ball game because there is no fixed amount to which you are at risk of.So if we divide the number of options by two we get 1017,000 ounces in the call option category.
The strike price of the call option varies from NZ $2000 to NZ$2100 and for arguments sake ( the tables and info don't seem to correlate ) we'll split it 50-50 half being of a strike at $2000 and half at $2100 so we'll call the whole lot struck at $2050
Now considering the NZ dollar gold price is $2340 at present then for every ounce of the $2050 dollar call they have sold they are under water by, at this point $290. Multiply that by 1017,000 and you end up being a few bikkies in the red and it could get worse or improve but the bottom line is this was never a hedge it was a gamble on the direction of the gold price.
Now check my numbers guys and see what you come up with.
The info is in the "derivatives and other financial liabilities" #14 of Oceanagold Q2 2019 financial statements.