low grades, page-41

Agree, it would not be a bad idea to hedge some of the expected production at these prices, say half maybe, or enough to secure the interest and repayments of this intended debt.

I say intended, because after reading the announcement few times carefully, it sunk in that he company is saying that all this is only intention at this stage.

They will go and speak to potential lenders and do their sums.
They are not desperate, they expect to keep trucking up to 20 tones to Barrick each month and get decent positive cash flow. So they will only take the finance if it is advantageous, if it means being more productive and getting to keep more dollars. Plus they have a paying customer lined up with mine near by, for processing of more dirt, who will help to pay for the plant in the real terms.

Surely this has to be a good news, not a disaster.

I have doubled my holding today and if the current weakness continues, I will buy more on Monday when my Telstra dividend hits the bank.