Ann: Tomingley Debt Restructured, page-30

Not sure if it was Nic or the CFO but one of them explained taking put options at that time was too expensive. And to be fair on them I think they are right. But was Put Options the only option outside traditional hedge?

I trade Options and can tell you the price of an Option, being call or put, varies greatly depending on where the price of the commodity or stock is. At times Options are great way to take a position and at times are way too expensive.

For example, when POG was trading at $2700aud taking Put Options at $3k would have meant the option is already deep into the money and would have been super expensive.
But if they took Put Options at $2500aud would have made sense instead of hedge at $2800 which looked attractive for the first 12 months.

My guess is it came down to risk appetite on this I don't want to judge them as it would have been close call. POG was just at a price where it was too hard to see value in either direction.

What they should have done is they should have only secure around $25M which would have required them to hedge half the amount they hedged. They had the resources at Roswell and SA already which would have been enough to get more funding later on and they did not really needed all that cash until now. That would have been the path I would have taken until POG hit ~$3500 and then lock as many Ounces as I could into Put Options at $3k.

However, the made many other mistakes which were easily avoidable if they spend any time thinking them over or listened to others who offered free help. On the costing of the expansion project - this is one of the worst I've seen. We are probably looking at around 100% budget blowout... but as some "experts" say that is not much. lol
BoDs and the MD here showed zero understanding of risks and even less understanding of macro, supply chains and geopolitics.