Core Gold DMMIF

RE:RE:RE:RE:RE:back to work

[edx]

calypsocrime wrote:
Excellent post, but isn't it true that DMM pledged Zaruma to Vertex? That's the collateral for the loan, no? You should not wish ill on anyone, even londry. I've never seen a company operating for any period of time without a CFO. IMO, Washer is milking this for what's worth before it declares bankruptcy. How much did he draw in 2015 for his salary? IMO, he considers DMM a lost cause but wants it to continue as a "going concern" for as long as possible to milk what he can for his personal salary.

DMM owes Vertex money. As a creditor, if they force repayment of the loan, the company will enter whatever bankruptcy protection there is in Ecuador. I don't pretend to know what that looks like, but I would imagine the company then auctions Jerusalem and if they can get $4.x million dollars (loan + interest) for it, and surely they can, then they repay Vertex. The only other creditor they have to really be wary of then is the Ecuadorean government, which can shut them down. Suppliers that are owed money can start a legal process to recover owed monies, but that will take months. The workers were the other major threat and they are now out of the picture.

If you think Washer is just trying to milk more salary remember that Washer owns 30% of the company (or about 15 million shares + options). He would do far better than his salary if he sold out the company for the current market cap ($3 million dollars in his pocket) than milk this for a few more months. Milking a salary is not a realistic motivation here.