Nyrstar announces new zinc price hedging strategy

Nyrstar NV has entered into further short-term strategic hedging arrangements utilising put and call collar structures to alleviate potential downside risks with respect to the price of zinc, the company said on November 17.

The new hedges are for 3,000 tpm of the payable metal produced in concentrate by the company’s mining segment for the first quarter of 2017. The collar structures, used to protect losses should prices go down, result in full exposure for the hedged volume to a floating zinc price between $2,127 per tonne (96 cents per lb) and $2,496 per tonne ($1.13 per lb). For the fourth quarter of 2016 and the first quarter of 2017, the company retains...

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This article was first published by AMM

November 18, 2016

02:20 GMT