Yes it was a sfety issue back in '05 when ofc zinc prices were exploding thru the roof, so what was a few extra cents in prodn they thought.
KB,
On hedging, i was involved in company many years ago that was involved in hedging mainly the A$, thus I know a lil about this. When prices are moving up ofc u don't hedge, u ride the wave upwards, but as prices peak and start moving down u must think of protecting future earnings and not gamble with it.. So as prices move down you hedge a bit at time...prob 5% then as prices start to tumble you do more and more.
What they should have ended up with is century prodn for '08 and '09 covered to about 50% -60% leaving the rest to vary with the market.
Now ofc it is far too late.
For this OZL/ZFX Management gets zero out of ten from me.
Cheers Muzza
OZL Price at posting:
$8.60 Sentiment: Sell Disclosure: Not Held
