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HEDGING | |  | |
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Oxiana believes that base and precious metal prices are headed higher and that the best protection against low commodity prices is to operate low cost mines. However, as part of debt funding requirements we are required to have some form of commodity revenue protection in place, and as such we have bought put options over the gold price, the details of which are listed below. Most importantly, this maintains Oxiana’s full exposure to any upwards move in commodity prices. These are straight put options which give Oxiana the right, but not the obligation, to deliver gold at the stated strike price. There are no offsetting sold call options and Oxiana does not have any forward sales.
Put Options in place, as at end of December 2007.
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Calendar year | Ounces | Strike price US$ |
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| 2008 | 62,700 | 370 |
| 2009 | 29,500 | 370 |
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Related pages
Exchange Rate Exposure
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