The hedge is simply against the market price on the day or any price mentioned in a sales contract.
When they deliver on each sales contract DML will know whether the hedge was a win or a loss move, but they do gain certainty and it would be folly to hedge at a lossmaking price unless you were in a real hard corner.
If they cannot supply all the Cu then they would need to cash out of the hedge or roll it over to a future sale.
DML Price at posting:
63.7¢ Sentiment: Buy Disclosure: Held
