RE:RE:RE:RE:$2900 Cdn Au price today Yes and No.
Buying Put for hedging purpose is as buying an insurance : you pay the price upfront and hope not to have to use it.
disadvantage : you use cash spot. You pay a premium (ie time, volatility)
advantage : your gain are not capped in case POG surges
Question : how much did they pay, quite out of hthe money today but maybe they bought them when POG was around 1950.
If they had sold forward the oz instead of buying a protection:
advantage : no cash to use and you get the contango in a normal market (cost of storing the asset)
disadvantage : you are capped. ie 34500 oz for 2024 at an average of 2057 (lower the first 3 months, higher after). So about 20% of 2024 production is "sold" at 2057 whatever POG will be.
And about 20% the production is protected below 1800 USD ! Not to mention that we will be in a big mess at this POG prices...