Seeing as how they have taken the cautious approach of hedging 330,000 oz at an average price of A$875 and a further 145,000 oz on a put option - see ann 23/8/07.
Further their ann on 31/7/07 said they had hedged 80,000 oz at A860 - I presume this is part of the 330,000 above.
The hedge arrangement is over five years and at an average output of 150,000 oz per year the hedge accounts for 44% of output with the PUT option accounting for another 19%.
Lets just hope they can produce closer to the traditional 250,000 oz per annum that the mine has been doing. Under that scenario the hedge facility and the PUT option only accounts for 38% of total production.
NGF Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
