Another element RED clarified in their March Quarterly Report was the precise details of the company's hedge book.
This had been a topic of discussion amongst some Hotcopper posters earlier in the year and I reckon management deserves a pat on the back for bringing some transparency to this issue.
Briefly, deliveries for FY 23/24 are about 108k ounzes at an average of AUD$2,335 (a bit more than I'd been expecting) and about 103k ounzes for FY 24/25 at an average of AUD$2,505 (a bit less than I'd been expecting). Final deliveries under the last few Quarters of the hedge book are at just under AUD$2,800 per ounze.
On the basis that KOTH can deliver annual production of about 210k ounzes, deliveries under hedges over the next two Financial Years will absorb roughly 50% of this production.
The cost of producing these ounzes (and the ounzes which will be sold at spot prices), remains the critical unknown.
RED Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
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