Oceana Gold's forecast quarterly production (scaled down for ease of calculation) for the next two quarters is presented in the following table

Quarter Gold Troy (ounces)

June 2019 2000

Sep 2019 2200

Dec 2019 2500

Oceana Gold's sales of gold metals are denominated in US dollars. In addition, Oceana Gold has a long-term variable rate loan (5-year maturity) of AUD$50 million and a variable rate loan (3-year maturity) USD $20 million. The next reset dates are 30 March and 30 June 2020, respectively

a)

Make recommendations on which derivative instruments (for example, options, futures etc) to use to implement any hedges that you have recommended . Once again, you must explain your recommendations (i.e. justify the choice of derivative instrument). This means that you will need to provide very well researched and fully explained reasons for your responses to this parts