I'm guessing he is eluding to the fact that if the contractors...

I'm guessing he is eluding to the fact that if the contractors have any delays, problems with mining, etc... we will have less recourse to action them due to the fact we are now in a working business contract with them (as oppose to straight up paid contractor).

IMO it seems like a good deal, gets them digging out our gold with a delayed payment (? is it up to 4 months?). If the POG can maintain above $1500AUD we shouldn't have any problems. Unfortunately POG has been waivering recently and it seems like macroeconomic factors are moving towards favouring fiat currency again and we might be back to a steady decline in POG.

For the above reason I will be personally looking at divesting my gold stock over the next 3-6 months if things continue to play out this way.

T2000: Would be interesting if you have any specific anecdotal stories/experience regarding miners going this way with contractors, cheers.