placement , financing pretty much sown up, page-5

cdchi1,

18 months or so ago you had feasibility work coming out that was marginal in the prevailing zinc price environment-and marginal is being generous.

The new zinc price regime, not so much spot as that effects more the equity market perceptions, but the forward zinc price has changed the project economics substantially.

Still not a high debt component which is not overly surprising with Maccas as a lead bank (the millionaires factory is more risk averse than its peers).

As to the quantum of equity, sure it is heavy and will/may cause capping of the SP in the medium term but you are 'derisking' the project-lower return on overall capital but a higher probability of achieving it.

The stock will probably move into 'boring' mode for a while as the project moves into development. Maybe some exploration activity but probably more atuned to zinc price movements.

As you are obviously fairly aggressive in your investment portfolio from what I have observed and eager to take on more volatile stocks (eg IGR) HER may fall into too dull a scenario for you in the near future. Hence our role reversal-you chase potential big movers, I want safer returns? LOL

Still like to know what a 'convertible' facility is. (If it is convertible notes would change my opinion yet again-a miserable instrument that works ok for mature companies, but can be a killer for companies without existing cashflow to support such issues.)

Cheers,TAS