The price risk is a big one in mining.
Especially during the ramp up when cut back in open pits and mine development in UG mines, post first production, is being funded from free cash flow.
The quick answer to why did HGO hedge at $12,500 /t in a rising market is because if they didn't and the price fell below that then they would have been forced to raise capital from a position of weakness to fund the ongoing mine development.
Interesting to see how much the price of HGO's three metals fluctuate.
They are all over the place like a chooks breakfast.
Hedging certainly makes forward cash flow planing much less of a nightmare and gives the Auditors the necessary comfort to tick the going concern box.
The price risk is a big one in mining.Especially during the ramp...
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Last
7.9¢ |
Change
0.001(1.28%) |
Mkt cap ! $165.5M | |||
| Open | High | Low | Value | Volume |
| 7.9¢ | 8.0¢ | 7.8¢ | $190.9K | 2.421M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 161527 | 7.8¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 7.9¢ | 187077 | 3 |
View Market Depth
| Last trade - 16.10pm 06/06/2024 (20 minute delay) ? |
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Last
7.8¢ |
Change
0.001 ( 0.52 %) |
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| Open | High | Low | Volume | ||
| 8.0¢ | 8.0¢ | 7.8¢ | 1491573 | ||
| Last updated 15.52pm 06/06/2024 ? | |||||
| HGO (ASX) Chart |