Yes they are bring forward cash flow. But the cash will pay down dept that has a high interest rate. So they will benefit from the lower interest cost from day one. Which will buy more than a few lunches!!!
If the gold price rises after the hedge is closed out they will also be banking the extra cash. I.E If the hedge is closest out at 1100 and then moves up and averages 1150 it adds another 4 mill to cash flow.
So if they get there timing right it could be very positive.
Ann: New Polaris Metallurgical Test Work Results, page-14
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