Ann: Capital Initiatives , page-65

Hi Beach
Couple of things to note re your comparison
Sons of Gwalia went belly up more for overpaying for the Pacmin acquisition
Gold hedging losses were due to improper accounting

The way to look at the 23.5 hedge is 900k silver presold at 23.5. If they are out of the money they can cash settle the hedge and make an equal amount selling spot silver. If delivery is allowed they can just deliver the 900k silver.

Again 600k of this should be covered by oversize material
Dont think problem for the company will come from the hedge
Production target being met are the key

I think they will get there. I give them credit for taking this to a mine in such a short time. I do also see that they did compromise thoughts on design to get the mine operational quickly. Again see this as teething issue

I am taking up the rights and in for shortfall