After July 2011 they pay less of a penalty to pay off a portion of the high interest debt. I believe the penalty is about 5%. Any savings on a refinance would have to be more then the penalty. With the exchange rate the way it is they have actually made money on the borrowed money.

In saying this, if they borrowed (refinanced) after July, in Canadian funds to pay off the amount they are allowed to pay off with only a 5% penalty, this may be something to look at, but only the portion that has the 5% premium penalty.

For an expansion they will need cash, either dilute or borrow. They can put themselves in the drivers seat if they start having positive cash flows. If they don't have positive cash flows by cash needed time, then they will be passengers, not drivers. The initial refinance after July should give a good indication.

Until then lets hope for good production and good netbacks.

Spidey senses indicate good cash flows after April 2.