Hey Slogger, from my understanding the hedging contracts would...

Hey Slogger, from my understanding the hedging contracts would actually be a positive for the company now that the price is below $120.
Before, WDR had contracted to deliver 2/3 of the quantity of ore expected to be shipped at $120 a tonne. With the price above $120 at the previous quarter’s hedging contract expiry date, the company would have had to pay the counterparty the difference between the prevailing spot price and that on the hedge ($120).
The lack of sales revenue in that period hurt the company since they didn’t have the cash to cover off on the hedging losses...or pay back debt or pay for working capital :-(
Now that the price of iron ore is below $120, the company would be ‘in the money’ on the hedging contracts. Thus, the lower than expected shipping tonnages would not be of as much concern from a hedging perspective at this quarter's contract expiry date.
Other concerns abound however!