12 unchanged sentences
To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
−Removed: The Company had outstanding forward contracts on 232,000 ounces of gold at March 31, 2022 that settle monthly through June 2023.
+Added: The Company had outstanding forward contracts on 221,000 ounces of gold at June 30, 2022 that settle monthly through December 2023.
The Company is targeting to hedge up to 70% of expected gold production through 2022, 50% of expected gold production for the first half of 2023 and 25% of expected gold production for the second half of 2023 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.
−Removed: The weighted average fixed price on the forward contracts is $1,956 per ounce of gold, respectively.
+Added: The weighted average fixed price on the forward contracts is $1,974 per ounce of gold.
The contracts are generally net cash settled and, if the spot price of gold at the time of expiration is lower than the fixed price or higher than the fixed prices, it would result in a realized gain or loss, respectively.
3 unchanged sentences
For additional information, please see the section titled “Risk Factors” in the 2021 10-K and part II, Item 1A of this report.
−Removed: At March 31, 2022, the fair value of the gold forward contracts was a liability of $1.8 million.
−Removed: For the three months ended March 31, 2022 the Company recognized a loss of $0.5 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
−Removed: A 10% increase in the price of gold at March 31, 2022 would result in a net realized loss of $43.4 million , the closing price of gold was $1,948 per ounce.
−Removed: As of May 3, 2022, the closing price of gold was $1,870 per ounce.
+Added: At June 30, 2022, the fair value of the gold forward contracts was an asset of $29.3 million.
+Added: For the six months ended June 30, 2022 the Company recognized a gain of $3.1 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
+Added: A 10% increase and decrease in the price of gold at June 30, 2022 would result in a net realized loss and gain of $7.2 million and $74.8 million, respectively.
+Added: The closing price of gold was $1,817 per ounce.
+Added: As of August 2, 2022, the closing price of gold was $1,780 per ounce.
Provisional Metal Sales
4 unchanged sentences
The mark-to-market gains and losses are recorded in earnings.
−Removed: At March 31, 2022, the Company had outstanding provisionally priced sales of 12,530 ounces of gold at an average price of $1,938.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market loss of $0.5 million during the year ended March 31, 2022.
+Added: At June 30, 2022, the Company had outstanding provisionally priced sales of 10,842 ounces of gold at an average price of $1,846.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.01 million during the six months ended June 30, 2022.
A 10% change in realized gold prices would cause revenue to vary by $2.0 million.
8 unchanged sentences
In 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
−Removed: The Company had no outstanding foreign currency forward exchange contracts at March 31, 2022.
+Added: The Company had no outstanding foreign currency forward exchange contracts at June 30, 2022.
Interest Rates
6 unchanged sentences
Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates.
−Removed: The Company had no outstanding interest rate swaps at March 31, 2022.
+Added: The Company had no outstanding interest rate swaps at June 30, 2022.
Investment Risk
1 unchanged sentence
We are exposed to changes in the fair value of our investments in equity securities.
−Removed: For the three months ended March 31, 2022, the Company recognized unrealized gains of $13.7 million in Fair value adjustments, net due to increases in the stock price of those equity securities.
−Removed: At March 31, 2022, the fair value of the equity securities was $161.9 million.
+Added: For the six months ended June 30, 2022, the Company recognized unrealized losses of $49.1 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
+Added: At June 30, 2022, the fair value of the equity securities was $99.1 million.
A 10% change in realized equity prices would result in an unrealized gain or loss of $10.0 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.