GREY:AVGCF - Post by User
Post by
MiningMonsteron Apr 03, 2012 12:13am
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Post# 19751369
National Bank swap comment
National Bank swap comment "Avion Gold Corp. entered into an agreement for the sale of European-style calls on gold for the next 12 quarters (three years) in an aggregate amount of approximately 36 Koz with an average strike price of ~$833/oz. This transaction has resulted in the cash receipt of $25M, which is expected to be used to maintain Avion's exploration and development programs and general corporate purposes. . .we reiterate our CA$2.80 target price and Outperform rating."
If you sell a call you receive the strike price, since the strike is deep in the money, it cost them approximately ($700 per call $25mil divided by 36k). National Bank figured it out, how come Rocks can't figure simple math... because he is on the wrong side of the trade and panicking.