Copper Collar factsAs of Q2 report, TKO had no cost collars in place for 42m lbs between $3.75-$4.70 from July-Dec. It is unclear whether all of the collars have Dec maturity or whether they are staggered over that time frame; it seems they all mature in December from the Q2 financials wording.
If they are all Dec maturity, then, because copper was above $3.75 for the majority of Q3, they would not have had to sell at the option prices and could have sold most of their 32m lbs for Q3 on the open market above $3.75.
If that is true, then they would have had at least 25m lbs remaining in options with $3.75 minimum. The price drop from the end of Q2 report to the end of Q3 report was only $0.03... so the paper gain on the options for Q3 financials won't be much at all.
The actual price protection for Q4, however, is where we should see a lot of benefit if copper continues to drop or remain $0.12 below the collar floor.