Hmm that explanation doesn't really tie in with their...

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Vector

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01/05/18

14:40

Post #: 32802088
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Originally posted by HenryBui ↑

Analyst comment: the advantages and disadvantages of debt and equity are well documented and, while increased dilution has reduced our valuation (see below), the benefits of greater flexibility for New Century, especially as first production draws closer, are more advantageous in both the short and long term.
Reading between the lines, it appears that one of those benefits is that associated with hedging. Typically, a debt provider also provides any hedging required. Given the significant increase in the zinc price over the past 12 months, it's probable that the pricing of different hedge providers will vary significantly.
By removing the requirement for a debt facility, New Century now has the option of running a competitive process for both currency and zinc hedging, with the former remaining on a near-decade-long high. We look forward to receiving further information on potential hedging in the coming months.

Source: the sophisticated investor

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Hmm that explanation doesn't really tie in with their announcement from last year re debt facility from Sprott saying that no hedging was associated with the facility. It was only pending due diligence and customary CPs. Also why wait 6 months for NCZ to change their mind where they could have raised equity and been in production earlier?

https://www.asx.com.au/asxpdf/20171011/pdf/43n3y46x8nd9qx.pdf

Last edited by Vector: 01/05/18

NCZ Price at posting: $1.17 Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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Hmm that explanation doesn't really tie in with their...

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