JAA All very true and good points. As I see it BDR doesnt have to use the hedge as it has the right to not use or use and im pretty sure its paid for when they paid the premium if it works like an option. They can use the hedge or not depending on the POG at the time, they can either sell into the market or expedite the hedging if POG drops this way they have protected their revenue, please let me know if this is wrong. MCQ hasnt got that much of a good deal if you look at the POG today although up the POG they will pay is 1400 plus the premium already paid which is 247 off the top of my head so their breakeven is 1647 not far off the current POG. I would say you are correct in that MCQ is certainly nicely invested in BDR and is obviously looking forward to higher gold prices.
If they did have a Cap Raising Id be in it and have shifted money out of a cash account. Depending on the price of that Id be in for 100k more.
I dont think there will be a cap raising as the 5mil was a contingency not a necessity.
Any property builder/developer uses contingency by up to about 20% of total costs and sometimes more, not for necessity but just in case of overuns and unseen hiccups. I personally think it was very prudent of BDR to do this.
Well the world didnt end even though I got a flyer under my front door from a certain religion proclaiming my suffering was over and the rapture was close. and the contingency, I repeat contigency money may or may not be used, in any case -------------------
CASH FLOW POSITIVE IN TWO WEEKS GANG.
My contingency for XMAS is to have another slab ready to go in the fridge- but just in case mind.
swimming strongly in a barrell - pure gold.
Have a safe XMAS gang the new year looks prosperous.
BDR Price at posting:
99.0¢ Sentiment: Buy Disclosure: Held
