Look for garbage in the Development Property
It is easy to come up with reasoning/rhetoric for a $10.8M haircut that will wipe out all the shareholders.
After all in asset sale, why would anyone pay for consulting, salaries and wages or supplies and consumables or any other “operational” costs found on pg 20 of the annual report and re-listed in a modified format below ?
Inverting the picture.
What if there isn't an asset sale but an investment instead.
One should also recognize a few other things: Dufferin was purchased at a receivership price of $9.87M and has effectively paid for itself with bulk sampling. There are $20M of tax credits that cover the majority of those “operational” costs. Insiders who know all the games invested at 14c/sh in the previous two years.
Consultants, Salaries and wages 10,843,538
Supplies and consumables 3,897,791
Overhead/other 2,478,579
Equipment rentals and repairs 2,242,541
Land & other acquisition costs 885,818
Amortization 754,603
Sampling, assays, drilling, mapping 749,239
Travel and accommodation 627,687
Commitment to issue shares 621,000
Investment in infrastructure 536,775
Shares for property 292,500
Royalty payments 125,573
Purchase of Dufferin Gold Mine 9,870,602
Proceeds from gold sales -9,469,726
Balance June 2018 24,456,520
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In a nutshell ...
Dufferin paid for itself with bulk sampling.
$24.056M of "operating" costs were priced at 14c/sh.
Balance June 2018 24,456,520
Purchase of Dufferin Gold Mine - 9,870,602
Proceeds from gold sales + 9,469,726
Sub-total of "operating costs" 24,055,644