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Enlightify Inc T.CGA


Primary Symbol: ENFY

China Green Agriculture, Inc. is engaged in the research, development, production and sale of various types of fertilizers and agricultural products in the People's Republic of China (PRC) through its Chinese subsidiaries, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (Jinong) and Beijing Gufeng Chemical Products Co., Ltd. (Gufeng), and its variable interest entity (VIE), Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd. (Yuxing). The Company's segments include Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production). The Company's primary business is of fertilizer products, specifically humic acid-based compound fertilizer produced through Jinong, and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, water-soluble fertilizers and mixed organic-inorganic compound fertilizer produced through Gufeng.


NYSE:ENFY - Post by User

Comment by amarkspon Mar 03, 2010 6:39pm
225 Views
Post# 16840259

RE: Hedging

RE: HedgingCGA has 214,347 ounces hedged at $859 average price for years 2-5 (there was zero hedging for the first 12 months).  This was used to finance Masbate mine capex. 

Thus:
1)  about 53,600 ounces hedged per year for the next 4 years at $859
2)  total annual production forecast at between 200K-250K ounces, so about 24% of production hedged for next 4 years.

With the recent PP proceed to pay off the high priced debt, current mine cash flow/production can be used to retire the hedge book early.
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