Hedging Should Be Part of Resource Story: Advantage's Mah

The video discusses the importance of hedging in resource management, emphasizing its role in a sustainable growth model. It explains the benefits of maintaining hedging levels between 30% and 50%, highlighting how even minimal hedging can significantly impact cash flow. The discussion also covers the company's strong financial position, which allows for capturing market upsides and potential growth, despite hedging. The overall message is that strategic hedging and financial strength can drive substantial growth and stability.

Why is hedging considered an essential part of a resource strategy?

• It eliminates all financial risks.

• It ensures sustainable growth regardless of price changes.

• It is required by law.

• It guarantees fixed profits.

What is the typical range of hedging maintained in the discussed model?

• 10-20%

• 20-30%

• 30-50%

• 50-70%

How does a 30% hedge impact the company's cash flow?

• It reduces cash flow.

• It has no impact.

• It significantly improves cash flow.

• It makes cash flow unpredictable.

What advantage does the company have due to its low costs?

• It can hedge more than 50%.

• It has strong margins and can capture upside if prices rise.

• It can operate without any hedging.

• It can ignore market prices.

What financial capability does the company have despite being hedged?

• It can eliminate all debts.

• It can reduce its workforce.

• It can increase its growth if desired.

• It can stop hedging altogether.