silver hedging

Amongst the many excellent posts recently that have attempted to summarise the company's pros and cons have been one or two mentions of the hedging program for the Fossey silver being regrettable. However, no one has mentioned the fact that it benefitted the company at the time by providing an up front payment of $5M (see announcement 20/10/10), without which even more new shares would have been required. Of course it also has the downside of meaning that some of the silver concentrate component yet to be produced will not bring in any funds, having already been paid for.