Ann: Repayment of SA Government Loan and Copper Prepay Facility, page-5

It does allow them to effectively lock in another 5000 tonnes at the current prices. Brings them out to 17000 tonnes locked in at around $8,800 which is $150m in revenue (presuming they can mine the ore!). So it might just be a cheaper way to hedge than providing margin against traditional hedges. Not sure what their margin level is but probably somewhere around $5m to $7m on the 12000 tonnes ?

The State loan was near due for payment and who knows what conditions were on it (eg no dividends before repayment). 7% is not exactly a punitive rate on the new facility.

Hopefully just clearing the decks of the conditional debt and locking in as much as possible at the current prices.