Market has no patience for exploration/ development from cash flow only. 5% interest is small price to pay to accelerate production. Dollar is dead, Euro close behind for the next few years Gold is King. If this moves production up by a couple of years even with Gold at $1,000, this is a no brainer....... as long as the gold is there.
On the point of a depreciating dollar, sometimes I wonder if Apple Computer should buy many tons of gold to diversify their cash holdings which are currently around $75 Billion and are on a trajectory to reach over $100 Billion soon.
I have no problem with Kinross borrowing as much as they can at reasonable interest rates. The other positive right now for Kinross is the fact that gold is trading at over $400 an ounce greater than their average selling price in Q2. With Kinross selling around 2.7 million ounces/year going forward, that translates into additional revenue of close to $1 Billion to Kinross on the rise in gold prices alone over the average of Q2.