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Mixed feeilngs on this one. Good that management hasn't rolled over to very low price placement but then again con notes are a two edge sword. The "headline" conversion price of $2.75 is almost irrelevant because con notes always have clauses that re-set the conversion price on certain events including "cheaper equity issues". Therefore payback of con note, while years down the track, will need to be made from equity raisings no doubt so some risk remains if SRK cannot get the shareprice up in time.

That said, it does by time, it is cash in this very difficult current climate and to some extent if SRK cannot get the share price north in a few years then the Russians deserve to get converted cheaper.

The more I think as I write the more I am happy with this outcome (depending on the fine print) given the Russians have already shown considerable good faith by stumping up $50M at $2.75 already.

Should put a floor under the price if it goes through.

Goodluck