howdie neighbours - fml, page-18

There are options for CRK and my observations are mostly a result of some comparisons that were made with FML. There are other mills round that could help CRK indeed, that is what FML has been doing successfully to date. So if that works for CRK then excellent for holders of the stock.

I would be cautious about forward selling gold production as a means of financing the mill. The sharemarket is littered with sad stories where such an approach has failed (to the expense of shareholders through emergency capital raisings or administration).

Problems with forward sales emerge when companies can't deliver gold in promised timeframes. CRK might not be able to meet its obligation if there were delays with mill construction or commissioning issues, or if actual grades dont meet forecast. These are just a couple of examples. If gold price keeps climbing then the profit upside for CRK can also be limited.

Raising the money to fund the mill would avoid these risks - but then dilute shareholdings. Either way CRK management is probably considering all options for financing its journey to production and could use any combination of funding sources to get the money and manage risk.