hedging has already cost the company $11.2m, page-8

Siamese and nomoregfc you could be brutally correct. There is probably a line in the loan agreement relating to the hedge loss in relation/proportion to the asset. Once it hits that trigger the company is toast and the asset belongs to the lender. Therefore a big rise in the gold price spells disaster for hedgers as their only asset reverts to the lender wiping out the equity holders. Anyone see what Mac did to Copperco? Anyone familiar with the Anglogold Ashanti story? Hedging is dancing with the devil.