RE:RE:RE:RE:RE:RE:POG I am familiar with the collar stategy and generally with hedging strategies but more in the pure financial "world": hedging the curreny risk of a a portfolio, hedging stock's investments through call/put strategies
My question was more about timing in 2020 : 40'000 oz. My understanding is that they implemented the collar with Macquarie. But I was wondering if more details were available about when and how VIT must pays Macquarie for the call sold
Quoting investor's presentation :
"If gold price goes above this price, we will have to make a payment to Macquarie".
Did they hedge the first 40'000 oz produced or is there different lot at different time during 2020 or is this based on specifif expiry dates ?
I would think that the payment to Macquarie is contingent on the sale of the produced Gold in the open market ? I sale my Gold when POG spot price is 1650, I pay Macquarie based on this price.
But the logic could be that they are specific maturiy date for the options, i.e. on a quarterly basis so payments would have to be done independently from the effective production. But in this case, VIT would have to sell the Gold at the same date otherwise the hedging would have a risky part. Example : I sell the 07 Jan. at 1650 in the open market but I have to pay Macquarie based on 31st Jan POG, let's say 1700 ! Not logical.