Hump, sorry, I am not sure what your rhetorical question is asking (not so rhetorical).
If I was a finance institution and BDR has 40 mill in the bank and they want to borrow from me unsecured (at a high rate) 60 mill, then I am probably pretty happy to accept my interest payments from them.
The more direct question is this: why did BDR do it. They have 45 mill in hand as we speak. They owed MacBank in the mid 70s (I guess) of millions to be paid by the end of the year. So, they RIGHT NOW have 45 mill in hand. They will obtain an extra 12 mill a month AFTER AISC.
What problem is there in repaying the Mac loan on target? Why did they sacrifice the hedges for a paltry 13 mill? I am sure the new 60 mill finance company picked up a couple mill on the un-hedge.
So, let me ask a question to your question... what ASX company would have plenty of cash and cash flow to repay a loan, and a useful hedge in place to ensure healthy cash flow... and then spend millions on refinance to put themselves in a worse financial position.
Hump, let us say have 100 grand in the bank. Do I run up, say 20 grand, on a credit card at 18% then pay the monthly interest to the bank?
I am in a really bad mood today. I put a simple question to Paula re the announcements and she wrote back... not if my question was true or false... not if I have misunderstood... she wrote back to me... "We’ll have to leave the interpretation of that information to yourself
BDR Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
