Great post prhb, it plays out the likely scenario that VRE were...

Great post prhb, it plays out the likely scenario that VRE were placed in. What I cannot seem to understand is, what has been paid for the gold produced thus far, and where are the proceeds from that production?

Perhaps the mistake was made in removing all their existing hedging, although no-one could predict the sub prime mortgage fiasco together with the credit squeeze.

Sounds like all they needed was to sustain the cash flow until they became cash flow positive. The non sale of Canilya Hill may be a God send and may provide decent figures allowing for refinance arrangements.

They need an accountant who controls the spending and finds ways to reduce costs.