mount oxide , page-12

From the company website:

Perilya has purchased options over 50 per cent of its annual lead production for FY2008 and FY2009 at historically high prices. These options guarantee a minimum price (net of the option cost) of US$2,414 per tonne in FY2008 and US$1,845 for FY2009 yet provide full upside should spot prices exceed these levels. These option prices compare favourably to market consensus forecasts of US$1,450 per tonne for FY2008 and US$1,080 per tonne for FY2009.

Take note of the statement about FULL upside. Basically the hedging will provide a minimum price but if the price is higher we'll get the higher price.

It actually surprises me that lead is priced the way it is. If you look at all cars they have a battery and electric cars have a number of batteries. Solar power requires batteries to store energy etc, etc. So as a previous poster said, with oil going through the roof, battery power has to start looking economic. Time will tell of course.

Cheers
Quik.