triage, take a look at the history of companies that have hedged. I am sure the management is fully aware of the problem they are in. You are right, Peter Cassidy on the board is a definite plus. But now, nothing much to do about it except go for a capital raising by dilution now to get rid of the hedges. Otherwise, if the price of gold goes up from here (which it will) it gets more difficult. You have rising inflation in China I think was over 7% to January. Also workforce tends to demand more money as POG (or price of output of any mine) goes up.
Alternatives, having no cash.. included getting someone else (an established miner) to mine and keep the production while you take a royalty, or a capital raising by dilution, or a JV deal. There may be other solutions. I don't believe the management at the time were fully aware of the implications of their lending agreement.
SGX Price at posting:
0.0¢ Sentiment: LT Sell Disclosure: Not Held
