Just watched the CNBC interview with Mark Gordon, and noticed he DID say "we put a hedge in" when asked about silver prices.........................Hope it was many months ago when silver was much higher.
In 2010, the United Kingdom Department for Transport awarded Odyssey Marine the exclusive salvage contract for the cargo of the Gairsoppa. In September 2011, the company announced that it had found the ship.
Under a contract with the British government, the Odyssey will retain 80 percent of the value of the silver it recovers, estimated at $210 million.
"We have accomplished a world-record recovery at a depth never achieved before," Mark Gordon, Odyssey's president and chief operating officer, said in the release. "We're continuing to apply our unique expertise to pioneer deep-ocean projects that result in the discovery and recovery of lost cultural heritage, valuable cargoes and important and needed natural resources."
My guess is the amount suspected to be owed to the UK was hedged so as not to come out of pocket if prices dropped in the interim period. I seriously doubt they hedged $35MM of silver. But who knows. It just gives the haul a floor for a price. I am sure there is comfortable upside as the silver price rebounds.
I am just content right now to have picked up some shares today that I really did not think were possible. The balance sheet issues for OMEX are practically over for at least a few years. If handled properly, cash flow issues are a thing of the past period.
Really?.........Although Gordon did not specify what kind of "hedge" he said OMEX used, there are a number of possible "hedges" they could have used Bash.......they could have used forward contracts, or swaps, or options, or futures contracts, or several types of insurance, or used the ETF markets, to lock in an earlier (higher)silver price .
Now why don't you tell us what you understand what hedging means.