chart, page-6

itinerant posted: "Also keep in mind that non-dilutive financing is a two-sided sword since it brings with it a debt (and interest) burden."


itinerant

this point is always raised against the option of going for 100% debt.

my intstictive thoughts (which have NOT been not financially scrutinised) are that if you will have a healthy cashflow positive business including repayment of debt/interest then surely you want to retain the largest possible stake in that business by avoiding any significant dilution?

if you can put up a sound business case for 100% debt, and the banks will wear it, then surely this is the way to go?

i would prefer to hedge future production at a discount to the current gold price, if this is indeed required to get the finance, than to dilute the shareholders base with weak nands that will bail out for a quick 10% or 20% profit after their discounted placement ...

k