Ann: Balance Sheet Strengthens- $50m RCF & A$4,400 Put Options, page-17

I for one am not a fan of this for a number of reasons.
Firstly - mgmt have done a stellar job to this point and this isnt me saying they are useless AND I could be wrong too!

1. OBM is richly valued on most metrics (dont come at me about what is coming etc - i know), therefore anything to be done you would think you use your fully priced scrip not debt. Plenty of organic opportunities and at 1.8B mkt cap - funding another undergorund is a drop in the ocean dilution wise.
2. What are the terms of the debt facility. At least tell us the interest rate and cost for having it open. How can anyone say its a good deal without knowing this? If it was really good surely they would want to share? And it should be good given the position we are in?
3. The SP has risen so far so quickly a lot because no handbrake of hedging. Granted this is an insurance policy so doesnt need to be exercised and take upside but that's a lot of $ for a security blanket? Why not start a progressive hedge program. Hedge a % each month as if price continues rising keep the % low and if starts to drop increase %. Thereby your level of safety will be at a higher level.

There is a saying that companies who need money can never get it from a bank and those that dont get it thrown at them for the fee. Can't help but feel this is the case.

Anyway - time will tell. Many will see this as a sign of a maturing company etc but my view is should have kept it as is and used equity from a position of strength if required.

My 2c.

Happy to hear competing views!