i don't think that you would be able to hedge as the commodities are not exchange-traded and there would be no natural counterparties.
Fixed price contracts, much more likely.
Of course there's a risk of missing out on some of the cream if you fix at current prices etc. But the reduction in uncertainty would be very welcome for shareholders.
NOte that LYC is trading at less than 20% of DCF value if current basket price is maintained over the long term.
i don't think that you would be able to hedge as the commodities...
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Last
$6.20 |
Change
-0.020(0.32%) |
Mkt cap ! $5.813B | |||
| Open | High | Low | Value | Volume |
| $6.12 | $6.21 | $6.10 | $1.505M | 244.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 27 | 14253 | $6.19 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $6.20 | 15395 | 10 |
View Market Depth
| Last trade - 10.43am 30/07/2024 (20 minute delay) ? |
| LYC (ASX) Chart |