Interesting idea as to how to refinance and restart “on our own...

Interesting idea as to how to refinance and restart “on our own terms.” The problem, I fear, is that this route could prove to be highly risky. What if, for some unknown reason the company was unable to fulfil its forward contracts. Say political interference, terminates or reduces production, or a serious plant processing breakdown, or the gold price collapses. Would the company have sufficient finances to survive under any of these scenarios?

Mining is a risky business as it is, more so if a company is short of funds. Increasing the risk profile further (even if it is theoretical) is probably not advisable. We have already seen that the market does not like the company’s risk profile, and, seemingly, even more so, management’s inability to have sorted the problem timely.

It has provided an excellent backdrop for market players to take full advantage of management’s short comings.