insider trading at its finest, page-18

Yes, I do find it odd that they closed out their hedges, it seems to be common practice now with miners that are losing money. Yet the whole point of the hedge is to be able to survive a downturn in metals prices!.

Maybe they were pressured to do so by the debt holders?
It seems the Banks force miners to hedge before start-up, and if the market seems to be in for a protracted downturn, the banks force them to close the hedges for a 'profit' to pay down some of the debt and minimize the risk to the banks who dont want to end up holding a patch of dirt in Africa.
But surely this merely imperils the business should metals prices remain low for longer than a quarter?

In the light of the closing the hedges, the cashflow problem, the fall in pgms (and to a lesser extent the grade/tonnage issues), I find it VERY surprising that they have not given the shareholders some idea of what the expected cash costs will be in the new environment.

They MUST have recalculated their new Cash Cost internally, so why not update the market? Possibly the only reason not to do so would be if it was negative to current metals prices, and announcing it would paint a bleak and imminent picture?

Anyone know why the MD quit?

I have been tempted to buy this, hence had a closer look this weekend, but I think I might sit on the sidelines until risk reduces. I have heaps of risk elsewhere, and I don't need more.