Ann: Quarterly Activities Report - March 2016-TRY.AX, page-38

Riverred

re the refinancing strat - im sorry but thats just nonsense. you are forgetting the setting 18-12 months ago.

the only way to get financing for a new mine was debt - no one would fund equity raising. even just the rumour of a riase would trash stock prices 30-40%+

and the only way a debt financier would provide that funding was with hedging. remember at the time all the professionals were forecasting usd pog going to 950/oz.

the only reason TRY is in the position to monestise the run up in gold price is precisely because they took that risk, financed it with the hedge - and sure now have some slighlty lowered returns - but they only have returns because of that arrangement.

So - the hedging prices being low usd pog and on a short time frame - they are trying to claw back some of the hedge loss through the aud/usd shifts - but whatever the outcome -the hedging was a small - and more importantly unavoidable - price to pay to get into production at what was really the perfect time

i might chip these guys about running the company for insiders and gulling the public investor to some degree - but the flip side is they took a well judged risk, have bootstrapped themselves back to life in a very tough environment.

and as i say - even with hedge costs TRY will be the best FCF/EV ratio producer on the ASX if they achieve guidance.

that tells you the full cost to get Karouni up was well spent.

as for BDR vs TRY agree. i own both. bdr's exploration upside is better at this point.

however - TRY has prospect for doing better than guidance at lower aisc - and if that occurs then it will be the better stock.

Importantly - bth stocks have at least 2 years of clear pathway of production without falls in output or project renewals etc

Many other gold stocks have mines that will either close or need to go u/g in that period - making their medium term outlooks less reliable