13c high breaking out, page-6

As explained to me the hedge buyer wants the hedge seller to be able to pay the amount of money required if they cannot deliver the gold. NGF has hedged 330,000 oz which are now $189,750,000 negative . That is to say this is the margin call if it were to be exercised. That is to say NGF owes $478,500,000 to the hedger at the current gold price. Therefore without counting the debt of the convertible notes NGF appears to be in huge trouble as it has to deliver gold at $875. an oz. while it's stated production cost is over $1000. an oz. NGF says it needs ~$25 million to get Mt Morgan into production and has ~$22 million (plus ~$16 million )in the kitty. Rumour has it that they are also involved in a lawsuit. Perhaps they could explain.