Hi Calm, I don't believe SPR will lock in any hedging at all,...

Hi Calm, I don't believe SPR will lock in any hedging at all, irrespective of the funding plan they have. So many better ways, including no-cost collars, put options (which cost a little upfront, but dont have to be used) or... just no hedging at all. Similar to WAF (the best projects are now able to get finance without hedging).

MoM did an interview recently of some impressive individuals within the investment community. They strongly advocated zero debt... just raise what you need, then get into the gold (I am very very.... very pro this option, after this company went under the first time due to having debt/hedging). Here is what a ASX producer recently did. Just $54 an ounce... locks a set price, with all the upside still available (I just don't see any reason to hedge.....). SPR could buy 50% of their planned production for the first 3 years (assuming 160-200k p.a) at approx. 270,000 ounces price locked, would only cost $14.5m. When I compare this to the huge out of the money hedges across the sector, it just makes sense to me (but... I am a small fish!).



For those interested - Simon speaks for about 40 seconds of this 3m interview.... only thing I found interesting was the last 30 seconds (and even then I am being generous, where Simon touched on studies looking at which way will be best to get the plant optimally setup for a return to production).

Spartan Resources: A new mine plan, new management, a new discovery and a new $1.4b market cap

@Peppie
Cheers for that update. 1.67m into a mine plan sounds excellent, with production hopefully sitting around 180k p.a for the first 7-8 years before it tapers off (this will, almost undoubtedly be improved up with further extensions/infill, but you need to work with what is known).

Premier plays in any sector, attract a premium, so whilst some may view SPR as fully valued, EMR and CMM and GMD have proven this.... is rarely the case.