If level heads prevail one outcome could look like this.CBA...

If level heads prevail one outcome could look like this.

CBA accept the best chance of getting repaid is for the mine to remain running. They call a default but don't force a sale. The company enters into a silver price hedge for, say 70%, of the next 4 years production. The forward price for silver with the forecast opex provides a buffer to repay debt and for their to be remaining equity value.

Whether its CBA debt or eventually Sprott debt is a related but separate issue.

CCU also has substantial, lower grade, silver Resource. With any appreciation of the silver price there could be further equity value in these Resources.

Hopeful, yes, but there is nothing too out of the ordinary in the above.