I believe it's right and proper to express disappointment at the...

I believe it's right and proper to express disappointment at the funding plan if one genuinely believes it was a dud deal. So no complaints from me about the diverse comments here. It's good to challenge.

My opinion is that Doray already have a significant hedge in place for AW and I wouldn't be happy if they hedged much more than this funding package proposed.

It's probably worth remembering that a hedge isn't cash in the bank now, it's just a an agreement to pay the contracted price on delivery. So whilst hedging more of AW production might provide a suitable credit line, access to the hedged funds is limited by the production (and swap) timelines. That's not always an option for capital projects and in my experience of metals and minerals, hedging is a good way to cover opex exposure.

There are of course some more complex forms of 'hedging' out there where, in circumstances such as Doray, a refiner will pay the producer in advance & upfront at an agreed, marginally discounted market price. The discount price will depend on the risk profile of the producer. All transactions would need to be backed by a bank guarantee (i.e. The refiner wants security), which in turn means the bank also wants it's pound of flesh from the producer (either a margin on the deal or transfer of assets as security).

If we look at the possibility of a bank funding the entire Deflector operation, we have to remember there is some manageable debt already on the books. The combined AW and Deflector debt would probably come at the cost of a few more basis points and some tighter conditions around asset security.

The banks view the precious metals industry very differently to other markets in terms of risk, so whilst the banks may be advertising a firesale on funding...all bets are off in the Gold industry.

I declined the share uptake offer as was my right, I believe in the fundamentals, and I'm in it for the long haul so I am ok with this dilution. I wouldn't like more bank debt than proposed and I wouldn't like to secure too much of a hedge. There is downside to hedging too.