Personally I am more worried about the hedging issue. An unfavourable hedging contract could see these shares going nowhere for quite some time. 200k ounces seems way too much for me - they are only asking for a loan of $65m and this for company that could be throwing off $80m in cash next year as you have pointed out.
management need to be ruthless when negotiating this loan to make sure it does not become a drag on the share price and an albatross around this companies neck - just look at the mess NGF got into with there hedging contract with Lehmans.
Personally I am more worried about the hedging issue. An...
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