Steve was kind enough to clarify my main point in a previous post.
Firstly the $25M CS loan has been fully drawn, aside from $5M which forms the retained deposit. Use of these important funds will need CS consent before being deployed.
At an estimate the hedge position 'was' worth $1-3M. However the value doesnt really accelerate until the POG falls below the floor of the position, which is at $1350. I say 'was' as the price has rise in the last week, so there is nothing meaningful in the value 'today'.
In summary, we have a fully drawn loan which cannot be covered by the hedge. This is one alternative we can cross off the list.
RED Price at posting:
62.0¢ Sentiment: None Disclosure: Held
