GwaihirI'm kicking the tyres of Adamus and haven't posted on its...

Gwaihir

I'm kicking the tyres of Adamus and haven't posted on its threads before (so assume ignorance rather than malintent please).

You seem to have a bead on the company's hedging predicament. By my reckoning, with gold at US$1275 per oz ADU is underwater on its hedging by US$58m. Is that about right? My understanding is that those "losses" will at some stage have to appear on the balance sheet. Yes?

The share price trend since the hedging was taken on in February shows no obvious sign that the market objected strongly to the low-blow hedging or the debt raising with Macquarie but your suggestion that the hedging may have been the cause for the previous CEO to go makes some sense to me. Looked very abrupt as if something of some urgency needed to be addressed asap.

The second cap raising in less than 5 months also suggests that the company is attempting to get out of a squeeze. They do not mention buying out any hedges or using the cap raising instead of macquarie money but surely it would make sense for them to do that. With the loan facility and the May $30m cap raising they had $100m on hand to get production up and running.

I admit that I do not have much of a sense about this compay so any comments to set me right would be gratefully accepted.

Cheers