FWIW I’m not thinking we need to rush into production again either - to exploit current gold prices or for any other reason.
— Gascoyne was obliged to go into administration in June 2019 , partly due to an untenable hedging schedule, until it was recapitalised in early 2020 - a long 15 months !
And it only came back at all partly thanks to Investec - the bank engaged to sell GCY (AFR said it wanted $150m) - instead helping to recapitalise it (after a fraught court case) with a new $40m debt facility.
13/08/20 https://hotcopper.com.au/threads/ne...r-a-125-mln-funding.5554226/?post_id=46506887
As far as that hedge went - Simon ditched it as soon as he could !
Pro Active investors wrote in December 2021 that it had borrowed $20m from Deutsche Balaton to get out of a hedging situation! “Once the funding comes through on December 21, Gascoyne will repay Investec and start releasing the senior security the bank holds over its assets.
In addition, gold forward contracts with Investec will be closed out in full on the repayment date.
Now, the company is looking for a new hedge counterparty to partner with its endeavours.
With a new counterparty in tow, Gascoyne can enter any new hedging arrangements at its own discretion and execute hedges beyond 30 June 2022, which it was unable to do under the Investec facility.”
- Anyway my take is that past hedging hurt and that Simon likes Spartan not being enslaved to debt or anything else … and financiers would be iffy at hedging near current prices anyway and that, as far as going back into production asap goes, I thought our gold seams were rich enough and fat enough - even with only current reserves - to mean this project would be profitable and attractive to investors even if gold prices crashed?
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