Ann: Debt Finance , page-16

Management have always been upfront about this financing deal and have stated they expected the finance would come with some sort of hedging requirement.

If the Silver price ran to $100 there is nothing stopping CCU from paying out the finance early with their unhedged income and gaining 100% exposure to the high silver price...

Just doing some rough calcs if the mine was producing 1mil ounces pa and the POS was $100 the income earned from the unhedged 70% of production, even assuming a $20 per ounce cost of production (vvv conservative) would come to $56million, that's 4 months to pay off the loan!

We also don't even know what the hedge contract will be set at yet.

This is also a nice and simple financing arrangement. Commonwealth Bank! Not exactly a dark arts financial institution...