CAI - General Chat, page-826

@speculator101

IMO They cant push back / reduce the current hedging for any benefit. The only way to change a hedging contract is to pay it out at today's prices. That would cost them about $70 million ish and then they would be at financial risk of a falling gold price.

I believe the only sensible way out is :

1/ Renegotiate debt structure so the next 12 months capital repayments are added to the end of the loan to extend the loan by 12 months. This buys time but extends the time interest payments are made by 12 months, plus

2/ A reasonably sized fully underwritten CR to provide cashflow for another 18 months if required. Note that the company is limited to a CR of 25% of shares on issue at a maximum discount of 15% (without needing to get shareholder approval).

It is worth noting that RSG fixed their similar problems with an almost 1 for 1 CR to substantially reduce and almost eliminate debt that was crushing them. The RSG CR was at 16c - the stock is now 42c.