guys what you miss is this is not protecting the lender it is to make the lender more money. They are borrowing US$70m.
The locked in price is $1075 less costs of $400 leave a margin of $775.
Therefore the total margin built into the facility is $224.75m (Based on 775 X 290,000oz = $224.75m)
The loan is just $70m.
This is more than 3 times the loan amount.
No is this protection for the lender of margin for Macqurie. Mark B should be embarrassed to come to the market with this facility. They could get the money but focused on the wrong point. The amount above LIBOR and was wined and dined by Macquarie and ended up a deer in the headlights.
Well done Macquarie line up and collect your big bonus cheques.
ADU Price at posting:
37.6¢ Sentiment: Sell Disclosure: Not Held
