Great spot Hippo, missed that one.So the hedge as per 31 Dec was...

Great spot Hippo, missed that one.

So the hedge as per 31 Dec was to deliver 102,768oz over 4 quarters ($3M pre paid @29.19/oz, 25,692oz/qtr), and 694,358oz over 12 months starting Jan (~57863oz/mth @33.77/oz)

So they have paid out 63,090 oz in physical silver, and bought back the difference between market and hedged rates for 278,381oz for $98,240, or about $0.35/oz.

Presuming the pre-paid deal is not affected, they have reduced the hedge to 352,887oz over 11 months, or 32,080 oz/mth.

Looks like they are aiming to hedge half of target production. If that is the case, then they have hedged 32,080 oz/mth plus 25,692 oz/qtr = ~122,000 oz/qtr, therefore target production would be 244,000 oz/qtr.

If 63,000 oz was indeed Jan production then at the same rate we're looking at 190,000 oz for the quarter.

Total hedge remaining is 455,657 oz, suggesting target prod of 911,314 oz over 11 months, average 82,847 oz/mth, equiv rate of 994,000 oz per year. That sounds about right, given the revised target of full prod by Q3.

However, 190k oz for Q1, plus full prod for Q3 and Q4 of 375k oz each gives 940k oz without adding Q2.

So maybe some of that hedge payout was from inventory.

If I take 45,000 oz for Feb, ramping up by 10,000 oz/mth to 125,000 oz/mth in October, that adds up to 1,015,000 for the remainder of the year, certainly in the ball park.

However, 35k + 45k + 55k for Jan/Feb/Mar doesn't come even close to my bum pluck of 250,000 oz for the qtr, more like 135,000 oz.

Hopefully they are hedging on a conservative target if indeed hedging 50% is their plan.

This is, of course, highly speculative, containing many unfounded assumptions.