"Commodity price risk is the risk that fluctuations in the price of coal will have an adverse effect on current or future earnings. The Group may use financial instruments to hedge some of its exposure to fluctuations in coal prices. In order to protect against the impact of falling coal prices, the Group enters into hedging transactions which provide a minimum price to cover non-discretionary operating expenses, repayments due under the Group’s financing facilities, and sustaining capital. The majority of the Group’s forecast export production is unhedged, allowing it to take advantage of increases in gold prices."
CCC Price at posting:
6.5¢ Sentiment: None Disclosure: Held
