hedging, page-2

Can they go broke
No.
That's because Ramelius can easily meet its commitment to deliver the 272000 ounzes thru to 2022 because it has 4 producing mines now and by 2022 should have 5 and the profit margins on those ounzes [ sold at average $2015 per ounze ] ensure their capacity to deliver.
But I believe the market punishes Ramelius for an overly conservative hedging strategy. I dont call it a daily discussion between the CEO and the CFO about their forward sales intentions a hedging strategy .
I give Ramelius a big fail for 1.the evident lack of opportunism and 2 its failure to enunciate a policy that locks in profits into 2023 and 2024 .I'm told this is because the bank syndicate wont let them commit this far out. They clearly need a new bank syndicate ...and a new CFO.
Last week Ramelius could have sold gold forward into 2022 and 2023 at $2700+. Maybe they did!
If such a decision was taken on say 10% of its forecast production in those years , let;s say 30,000 ozs then gross profits of $40million+ are locked in . This is sufficient to maintain a decent dividend to shareholders whilst ensuring that adequate funds are available to meet necessary mine development for future production .
You could contact the company for an answer...don't expect an intelligent response.