Hedge downside?6 Aug 2021 13:06
The 'the Company has hedged (the "Hedge") approximately 70% of the Company's and its partners' share of future gas sales, estimated under a conservative projection, for three years beginning in July 2022,'.
Approximately 70% of a conservative estimate - does this mean that the company has entered into a contract to sell a specific amount of gas per month from July 2022. Are there penalties f they cannot deliver the gas they have agreed to sell? Have any penalties been insured against?
How will paying off a loan earlier than expected cancel a hedging contract with another party? Stating that the hedge will be 'wiped out' by early repayment of the loan is highly unlikely to be correct; if it was, they would be trying to renegotiate the loan right now and then re-hedging the gas sales at a higher price?
Some people just seem to male up nonsense in the hope that other people will buy and increase the share price to their advantage.