T3XI highly doubt that the hedging can be paid out.We would have...

T3X
I highly doubt that the hedging can be paid out.
We would have to see how hedge book #1 was contracted and if there is a pay out clause and at what price.
At the moment the holder receiver of the produced gold is making a good margin on the arbitrage. I hope and think that if this is this case
they like many of us will help the company to grow financially and it reflects in the spot price. Remember entities like JP Morgan , The newly appointed custodian of gold , and citibank have their finger in everybody's pie not just Red 5. It will eventually be in their best interest to see commodities do well so as to offset their other losses.
As for Hedge book # 2 not likely for the same reasons above.
The overall hedging is reducing 1/4ly and the price of Gold in U.S and Aussie dollars is slowly offsetting our hedging and right now this is being reflected in the Red 5 spot price. We are still producing good unhedged volume and hopefully keeping our AISC viable. Do not forget we were able to make some good production cost deals at the time of KOTH inception and forward looking where would a new Gold mining production facility have to start price wise. For this reason Red 5 is well up and running has a few 1/4's under its belt and has met production targets with debt and liabilities under control. Red 5 is extremely viable and headed for a fantastic future.
P.S Gold is the product and the Balance sheet is the result. Looking good RED 5.
Red 5 is on fire and Gold isn't looking back.