Both of your statements are correct. The above calculation shown by Bandicoot represents the estimated cash position of the outstanding hedges as at 31/12/08.
As far as the reported profit/Loss of ROC, they do mark the hedge book to market resulting in large non-cash adjustment to the P&L account.
As the hedge position is likely to be in the money as at 31/12/08 compared with it been out of the money by US$58.6M as at 31/12/07, there should be a large credit in the 2008 P&L account from these hedges. Could be as high as $58.6M + $13.2M = $71.8M credit.
It should be noted that the US$176.4M liability in the 30 June 2008 half year accounts will be wiped out and replaced with an asset valued at about $13.2M.
(Note the actual value of the hedges will be recalculated by ROC using the hedge curve as at 31/12/08)
Regards
SP
ROC Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
