I expect the person being quoted is Steve Parsons


NP says Iberian is anything but on hedge of disaster

2008-11-28 09:31 ET - In the News

The National Post reports in its Friday edition that Wellington West Capital markets says Iberian Minerals is poised to benefit from its hedges. The Post's Jonathan Ratner writes that according to Wellington analysts there has never been a better in recent history to have hedges. Tight credit conditions have meant only a few companies have implemented base-metal hedges recently and even fewer have material hedge books that position them to reap the benefits of the "most rapid retracement in base metals prices ever." Wellington flags Iberian Metals as one such name that has seen its balance sheet improve despite weaker metal prices. Its hedge book was established in the second quarter and stacks up as the best in terms of mark-to-market value versus market capitalization and enterprise value, the analysts said. It is far enough in the money at $234.5-million (U.S.) that monetizing the hedge would more than cover the project debt for the Aguas Tenidas copper-zinc mine in Spain. And the mine has not produced a single pound of metal yet. The possible closure of its Spanish hedges, along with the declaration of production in Spain, are therefore considered two potential catalysts for the stock.