I am currently DMOR'ing on DIO, and also generally like what I have seen so far. But as a real newbie to gold stocks, I am not sure of the import of a hedging condition in their financing with BNP Paribas, ie.
"the financier has required the company to ‘insure’ the future value of the stockpile by entering into short term ‘forward’ hedging of 38,000oz of gold over four quarters commencing 30 June 2009 at an average price of A$1004/oz".
Would this act to cap the selling price of the first 38,000oz produced in FY2009/10 to A$1004, or would it work more like a minimum "floor" price they are guaranteed to receive?
Cheers,
Jordie
DIO Price at posting:
36.5¢ Sentiment: LT Buy Disclosure: Not Held
