Mate ... you might be right, but I'm not lending them the money. It's up to the Lender if they would ACCEPT a Hedging Contract (whether or not CTO would offer it is another issue [which I doubt]). Any way, that topic is probably done to death.
Another importnat barrier to finance will be problems with other Gold Mining 'juniors' such as BDG, VRE and MON. Banks would have to be nervous.
It is TOUGH out there ... finance is hard to get. This is simply my point. There has been a lot of talk on this Forum about "why don't they just borrow $30m, it's a small amount" ... it is not that easy (assuming that's what ML wants to do).
I feel that they only have 2 options AT THE MOMENT:
1. Self fund through production and organically grow.
2. A Private placement or raise more capital through existing shareholders resulting in further dilution. I don't think they would consider this until there has been some (considerable) recovery in the Share price ... then the math might work.
Which option is the right option is a moot point. Some of the guys have been bandying around figures based on accelerated production ... I would like to see what the break even point would be.
Now, when Gold blows, the situation may well be different.
CTO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
