RE:Hedge Cost US$7.325 million BigIsBest, I suggest you read the "Derivative Financial Instruments" Section of the Q1 financial statements. I believe you misunderstand at least two points. Buy vs Sell, and Broker vs BNP.
This quote from that section might get you started toward what I believe is a correct interpretation of these swaps. "During the three months ended March 31, 2020, 4,235.1 gold call options were exercised by BNP and the Company paid BNP $0.7 million".
They did not buy $1390 call options from a broker, as you suggest. Rather, they sold $1390 call options to BNP (hence BNP gets to exercise those options). In exchange, BNP sold them an equal number of put options at $1300 for the same price. They are called "zero cost" because the two sets of options were priced the same at the time, so no money changed hands then.
I know it's complicated, but that section of the financial statements spells it out. I expect the $0.7 million number mentioned in the bit I quoted will be more like $2.0 million Q2 given the rise in gold price.
BTW, if the most they could lose was $99 per ounce, as you suggest, how did they lose $700,000 on 4235 ounces in Q1? That's $165 per ounce.
Of course I could be completely wrong. Wouldn't be the first time. If so, please educate me.