An option call sell is betting gold will fall. You pay a premium abv strike price for every oz * 50k oz.if gold falls you gain and close with a buy call @ closing price specific day for option uk style.now gold will mostly fall so rrl mgt not lose .if it ends flat then you lose the premium as most flat closes force you not to exercise ...though the huge concern shouldnt be the transaction.but the fact a gold mining co wants to trade derivatives instead of selling gold at spot or forward prices..(hedged prices) If they wanna become a hedge fund they should say so.. You risk the premium paid if the position closes 'out of the money'..now this whole transaction whether it will close profitable or not is just another non business income or loss made ..they should stick to bizness.
As fo a flat hedged 2014 thats just an average production output.since they produce more than 150k a yr they will deliver well ..they should imo hedge more close to their 75% yr output....1400aud an oz isnt bad at all .sar got the best deal @ 1590 hedged.. Kcn has some @ 1400 and @ 500 margin why worry gold aint gonna go above 1500..there is profit
update on flooding, page-88
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Last
$1.61 |
Change
0.018(1.10%) |
Mkt cap ! $1.208B | |||
| Open | High | Low | Value | Volume |
| $1.61 | $1.62 | $1.59 | $2.001M | 1.248M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 32 | 72131 | $1.61 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.62 | 52211 | 32 |
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| Last trade - 15.13pm 12/08/2024 (20 minute delay) ? |
| RRL (ASX) Chart |