Not sure I understand what you mean by loan portfolio hedging Paddy. Would this not be achieved by rebalancing the said portfolios in line with risk appetite / caps across various commodities. If you're thinking derivatives where the bank acts as a hedge counterparty then yes, sure.
Not being able to hedge price risk is a key disadvantage for the producer and ultimately the bank. Then again not all producers who can hedge do hedge and banks are fine with it. For others banks will mandate a min hedge ratio before lending. Horses for courses I suppose.
This isn't really applicable here given pricing is determined by offtake agreements with a floor & ceiling to achieve a similar result (collar). Hedging outside of this would be seen as taking a speculative position and both equity markets and those running the Co don't like this.
Long way of saying that adding lithium products to LME would provide more transparency and hedging for open market sales but might not do much directly for producers like ours with forward sold products. Ofcourse all in my own opinion and happy to be told otherwise.
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