Under valued, page-518

I really think the company should take on debt and pay out at least part of the hedges.

As per the last quarterly, they owe Macquarie 295,000 oz of gold.

In March this year, the price of gold was ~$2200.

Today the price of gold is ~$2560.

That is a ~17% difference. You get a better rate on your credit card.

If the company was to get a loan to pay out the whole amount at $2400/oz (5th November price), it would be about $700m.

It would also be at an interest rate that is closer to 5%, which is less than the 7.5% that represents the increase from $2400 to $2,580

Yes, it is a lot, but at least the interest payments would be tax deductible. I am not sure what the tax benefits are of the hedges, if any, so would appreciate any insight.

The more I think about it, the more I think the company needs to act, each day the company leaves these hedges is a large amount of money being lost.

Surely there is something the company can do to at least mitigate these hedges more, and further support the share price. The under performance is crazy, and I think the company could pay back the loan in 3 years quite easily, and even less if POG goes up, whereas they get no upside in the current situation.

Thoughts?