Isladar - You only asked "half" the question about RED's hedging...

Isladar - You only asked "half" the question about RED's hedging position.

How much is the hedging opportunity cost over the next 2 1/2 years odd if the current AUD gold price remains exactly where it is at the moment for that entire period? Your estimate of $300m is probably a reasonable one.

But you didn't ask about the other side of the coin - what the cost would have been if RED hadn't undertaken those hedges.

That's a more difficult answer to quantify. Without those hedges, the banks wouldn't have provided the funds to build KOTH.

So I guess the cost of NOT taking the hedges is the NPV of all the after-tax profits KOTH will produce for the next 15 years or so (or longer if its operating life can be extended out even further).

For balance, Isladar, I'd be interested in what your estimate of this figure is.