It seems to me that de-risking is about reducing risk and adding certainty. Enterprises who have an exposure to copper price risk usually eliminate the risk by hedging.
I'm having trouble understanding how, adding a high risk short position in a emerging copper producer whose fundamentals put its share price on a growth path in parallel with what happens to the copper price, can de-risk copper exposure in a portfolio.
I'm very keen to learn, can you explain how that works as a de-risking method please?
"Lachlans retiring to have a Holiday" announcement a few months after the sudden and unexpected " we are raising $10m for exploration and working capital" was a double whammy "whats gone wrong" event that added a big measure of uncertainty to what was going on at HGO.
It also instilled fear and uncertainty which IMO rang the "have a look at this" bell on the shorters desk.
HGO Price at posting:
5.6¢ Sentiment: None Disclosure: Held
