Post by
Nick2021 on May 09, 2024 3:09pm
MND hedge
I was dumbfounded to find out on today's conference call that 4 months ago MND decided to hedge a quarter of its production . . . naturally, right before gold prices took their huge leap this year. This is absolutely unbelievable -- after eating HUGE costs from the financing hedge that we were forced to accept as the price of not going bankrupt, and waiting forever for the company to finally be free of that millstone, they do the following:
2023 -- crater production right as the hedge goes away
2024 -- take on a new hedge, just before gold prices shoot up (which, incidentally, is exactly what happened with the last hedge
Anyway, I assume that this is what that throwaway line about a "6 million dollar loss" in the financials refers to; which means that over the course of this year, assuming the price of gold stays the same, the cost of the hedge is going to be more than the free cash flow of a full quarter. Good job!