GREY:ABGFF - Post by User
Post by
geordieboyon Dec 03, 2010 3:37am
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Post# 17794087
Equity is the way to go
Equity is the way to goAny loan to a gold company, especially pre-production, will require gold hedging in one form or another . In a gold bull market this is a no no. Debt is bad idea for a small miner anyway. By raising more funds than required for the capex BZA wil have extra cash to start the drilling needed to prove extra reserves and extend mine life. In terms of moving the share price to another level this would be a big kicker. Also - assuming the PP is filled of course - they will not now need to sell the Balmoral holding which many on this site believe has big upside too. The PP will hold the share price down for a short while, thus irritating those shareholders with the attention span of a gnat, but next year should be a corker.