15-04-2024, 08:34 AM
CTF managed to produce hedging losses even in years with slightly decreasing gold price.
The gold price long term goes up due to inflation, so long term, hedging will produce losses.
And regarding earnings volatility, a closer look makes the results even worse:
CTF earnings increased in the past couple of years due to rapid store expansion. Yes, increasing earnings is also an increase in volatility, respective a increase in variation from the mean.) The increase was partly destroyed by hedging losses. Great
Don't tell me, that's what anyone really wants to achieve.
The gold price long term goes up due to inflation, so long term, hedging will produce losses.
And regarding earnings volatility, a closer look makes the results even worse:
CTF earnings increased in the past couple of years due to rapid store expansion. Yes, increasing earnings is also an increase in volatility, respective a increase in variation from the mean.) The increase was partly destroyed by hedging losses. Great

Don't tell me, that's what anyone really wants to achieve.