RE:RE:RE:RE:RE:RE:RE:Psych and argonautgold The third leach pad isn’t an expansion. You should have obtained information pertaining to the third leach pad, as the company has stated that without the third leach pad, operations at FC would cease and the mine wouldn’t be producing anything.
I spoke with IR about FC and she even said the company wasn’t focused on the operation and the US$70 million CapEx for the third leach pad was necessary because without it, the company wouldn’t be able to produce anything at FC.
The SpinCo company will be obliged to pay for the leach pad now, as the company will not have enough capital to build the leach pad this year. They didn’t refinance and obtain a sufficient amount of funding to do so. They’re only allowed to allocate C$10 million to US and Mexican operations. SpinCo will have to raise capital immediately in order to build the third leach pad.
The company will use any other available funds to begin paying down the loan facility, cover CapEx at Magino, offset the loss from the pre-paid ounces, and cover any and all costs which were deferred. Additionally, it will cover any losses incurred from OpEx or CapEx overruns, for which the company is famous for.
You literally made up the figure of 100k per year at FC, the company has never stated that. You, ‘Lifexprt’, just made that production number up and decided to post it on a public forum.
The tech report for FC doesn’t include an annual production of 100k ounces.
In order for that operation to produce 100k ounces per year, the company would need to expand their mill and increase the throughput rate by approximately x2. This would require a substantial amount of funding, as the operation already requires a US$70 million dollar leach pad.
FC isn’t even profitable over LOM, I’ve proved that by sharing my cash flow model of FC. You can compute the data yourself, the company has already released 2024 guidance. Using the operating data, including cost per tonne (OpEx) from the 2024 guidance, the mine is losing money with the gold price at $2,500 per ounce.
FC becomes profitable only after subtracting royalties and CapEx. This is absurd, why are we crunching numbers for a gold mine while gold is trading at an all-time high?
The Mexican operations are toast, as the 2024 guidance states 2/3 mines are only processing residual materials in 2024. There will be no additional concessions issued to these operations, and the company is currently losing money operating these mines. Hence, the company is hiring a financial advisor in an attempt to sell them off.
Why do you talk like you agree with the outcome of the acquistion? You do realize you could have invested in AGI a couple years ago right? The thing is you didn't.. Now after forcefully getting bent over by AGI, you want to tell us all how much you like it? Like Crazy said, these people turned a 10 bagger into buying a stock of a company which is trading at an all time high. Now you will be lucky to get a 50% return.