RE:RE:FURTHER HEDGING OF ZINCAlberz, thanks for educating me..
You have talked about what happens at the negotiating table i.e. the desire of the miner to do the hedging at the highest price and the desire of the smelter to do it at the lowest price. But I was talking about "Should TV go to the negotiating table?"
Two parties come to the negotiating table if:
(1) Both have different opinions of the future price movement - one thinks the price has reached the peak or is near the peak and the other thinks that there is still a lot of price growth remaining.
OR
(2) Both parties have similar opinions (prices will go up) but one of the parties (miner) is being forced by other stakeholders (financial institutions) to bring certainty to revenues.
When I asked "If zinc price hits 1.40, would you recommend further hedging of 20% production?" When I asked for views from posters, I wanted to know what people thing of future zinc price movements - has the price almost peaked or there is still a lot of price growth remaining?
WHAT DO YOU THINK? WHAT IS YOUR OPNION?