Ann: Equity Capital Raising to Recapitalise Dacian, page-771

Good point. It depends on being a forward or future. In a futures situation, they need to pay for the loss, in a forward position they lose the profit potential. Either way it's a sale of gold at a materially lower price to spot and at / or near their AISC. In the event that there isn't the gold being produced you need to buy on spot and then sell at the loss - we've seen that a couple of times in the past decade. A very dangerous path to tread if there is a failure in the mill or mine, you're spending cash to fulfil a contract, and if the spot price is higher than the forward price, then you're getting hammered. I'm trying to remember the name of the Indo copper/cold mine that had the failure about 10 years ago and went from hero to zero in a very short space of time.