I told you Caribou should have waited Bone headed management announced they were re-opening Caribou in January. They hedged 2 years of production at $1.25. I said all along that Trevali should wait for $1.50 zinc before re-opening Caribou. Caribou on care and maintenance serves as an option on the price of zinc. Trevali exercised that option much to early. The $1.25 Caribou hedge has been a disaster. The company has not made any money on Caribou because, like always, costs have been higher than expected. In addition, inflation is pushing costs even higher as time goes by.
Imagine if the company had waited 9 months and opened Caribou with a $1.60 hedge. The difference would have been $.35 x 62M pounds = $22M additional profit in 2022. With the current hedge, Caribou will at best break even in 2022.
Where do you think the stock price would be if investors expected a $22M profit boost in 2022? Caribou could have been a golden goose for investors. Instead it has been a big nothing.
I warned everyone that opening Caribou too early was a mistake. Plenty of clueless posters argued with me. I also told you that zinc would go to $1.50 this year. I have been proven right on all counts.
I TOLD YOU SO!