OPG secures further hedge against coal price movements

21st May 2019 14:55

(Sharecast News) - OPG Power Ventures announced on Tuesday that it has secured a further hedge against the volatility of coal price movements, and has entered into a fixed-price coal purchase agreement for one million tonnes, representing around 60% of its annual coal requirements.The AIM-traded firm said the delivery of coal under the purchase agreement would take place from June 2019 to March 2020.It said the precise terms of the agreement were confidential, but the board did confirm that the fixed price achieved was in line with its expectations."Whilst other costs, such as freight, remain outside the company's control, with the price of approximately 60% of the company's coal requirement now fixed until March 2020, OPG expects to benefit from the greater visibility that it has on its 2020 financial year performance, which remains in line with market forecasts," the board said in its statement.