Metals & mining: hedging copper, aluminium and precious metals exposure

Mining groups face multi-year price cycles and multi-entity books. Metals hedging is how they stabilize cash flows without freezing commercial flexibility entirely.

Roll up exposure across subsidiaries first

Group risk is often invisible at entity level. Copper concentrate in one subsidiary and aluminium downstream in another can net — or amplify — when rolled to group currency and maturity buckets.

A metals hedging program that skips roll-up tends to over-hedge locally and under-hedge globally.

Forwards vs options when cycles turn

Producers often prefer forwards or collars in strong balance-sheet periods, and optionality when they need floor protection without capping all upside.

Vol surface context helps explain why protection costs what it costs — especially into event risk.

Make hedge ratios board-readable

CommoHedge supports metals desks with exposure roll-up, strategy construction and consistent MTM so mining treasury can defend hedge ratios in committee.

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