This is remarably good news....from HL home page TODAY..........
........"In addition, the ability of the combined company to raise the debt this quickly is a testament to the quality of the assets. Hecla negotiated a six-month window from closing before the gold hedging is required in order to consider other financing alternatives that would eliminate the hedge requirement. ".......
Maybe Baker does read the HL Outpost message board.
He pulls this marriage off with Aurizon WITHOUT hedging any of the gold......he goes to the front of the class-----I'll take back every past negative musing concerning his ability to perform acceptable CEO functions.
New to the message board, so this maybe a bad question: Still learning about miners but it seems the amount of gold possibly being hedged is 2 years current production. If it allows for a large pickup in future production from an long life asset, why not do it, especially if it gives a decent loan rate? And with the possible threat of gold going down in the near term future, how large of an oppourtunity cost is there?
Hmmmmm, hedge gold for $90 bucks less than it's currently trading at, and with EVERY sovereign nation on the planet RACING to devalue their currency (printing to keep the massive global financial ponzi scheme up and running), does not seem like a prudent idea.....in fact , take a look at CDE (or HL, for that matter, re: lead and zinc hedging history----repeated quarterly hedging losses), and their (CDE's) bottomless pit hedging deal with Franco to finance the purchase/build-out of Pal.
Your exactly RIGHT !!!!!!! As I read the releases, the plan has always been to sub the short term bank debt with long term "high yield" bonds restoring the Balance sheet to "Zero" debt with Zero hedges !!!!! Perfect timing. The cost of capital has never been this affordable AND the new revenue stream can be used to open HL's new silver mines in Creede and San Sebastian, Mexico !!!!!! The greatest "takeaway" from todays' releases under the paragraph on growth potential which states that the combined silver equivalent production for 2013 is 15.3 million ounces. Pre acquisition, HL's growth target was 15 million ounces by 2017. Guess what ??? We're there at closing !!!!! Phil Baker has taken this company from a "one trick" pony to owning 3 world class mines, no country risk , no debt and 2 world class projects heading toward production in 2 years !!!!! Excellent report card !!!!!