Hi all,I'm a new CTP investor here. Normally I'm focused on...

Hi all,

I'm a new CTP investor here. Normally I'm focused on mining stocks but have decided to branch out a bit into some of the energy stocks on the ASX.

Reading the quarterly report, I'm trying to understand the section of advance production contracts for natural gas for the next 5 years or so (the graph on the bottom of page 3). I assume this is basically the same as the hedging that is normally done by mining companies.

So here are my questions to those of you who have been here a while:
1) what is the maximum production that CTP can produce in a quarter/year over the volumes already contracted? Lets assume there is a shortage of gas in the near future. Would CTP be able to increase production on short notice to meet additional demand?

2) I assume that these advanced production contracts are bought at todays spot price (please tell me if im wrong). Does this mean that if the spot price rapidly increases in the near future, CTP will not really see any significant benefit in cashflow until 2023?

Thanks all
DL