Ann: Mutiny Gold Ltd books $11m profit , page-3

coinemas2:

If the company is likely to be in production it would keep the hedge.

This is because they can produce way below the price of buying on market.


Why close the hedge when you can produce at say 900$/oz and pocket the difference.


The whole point of the hedge was to protect price volatility in the first few years and to cover CS's repayment. There is a possibility CS has asked for their 16m debt to be repaid and/or are reducing their exposure in MYG. If this wasn't the case they would have let MYG keep the cash from this transaction but instead asked them to repay debt.

It looks like MYG couldn't get finance on current balance sheet and was forced to bolster it. This could mean a capital raising in the nearby future to bolster the balance sheet as a condition to getting financing.

The other sign is requiring 4 banks to finance this. A bit odd isn't it? Tread very carefully guys... 50% finance success 50% failure. Really gambling atm.