CollarsNot sure how much tko made. But let's guess about 30 million cad. On 100 million pounds for the year.
So average is 5.25 plus the 30 for 5.55 break even. At one point last nite copper was up 0.27 u.s.
A bit ago lost all that and more. I think it is rising again. At the high, Comex was 1 thousand dollars more than lme. It appears that the shorts cheapest cover is to buy physical copper and deliver to Comex.
If they can buy copper on water from lme it will save some freight and handling costs. So that puts some much needed copper on u.s. ground. However that stops lme recharge in an already dwindling
Warehouse inventory. So naturally lme price goes up.
Tko, is in a weird spot. The backwardation would suggest that copper will come down in sept.
I doubt it though. If they do get a trough in sept, perhaps Stu can do a buy back then. I find it hard to believe that you go long on copper by buying 100% of gib and then lose the profits by going short on collars. That has not happened yet. There is probably much sleep being lost around the world do to greed.
Time to check copper price.
Nf