Permit etc... Just re-listened to the call...
I want to know more about this fluid flow permit NOV 2 2012 that GMP Richardson stated they had a copy of on the call. That is serious. Very serious.
Surely this isn't the same fluid flow permit they said on DEC 5 2012 was not yet approved but is anticipated by year end? Surely this is not the same permit they said previously in the call is expected over the next 1-2 months but they have 'no control' over the process? Give them the benefit of the doubt that they didn't have the money for the bonding requirement on Nov 2 2012 (which I don't buy as they didn't have a problem paying an initial down payment $560K plus monthly payments of $300K on equipment financing with Caterpillar on Dec 6 2012)... But regardless they now definitively have the funds to acquire this permit so where is it? GMP Richardson says it's approved and they have a copy... so why are they not increasing fluid flow? The pad expansion has also been complete since end of Nov or early-Dec at the latest.
Also, why did they need to heavy earth moving equipment in early Dec when they now say they will not be moving new ore to the pad until end of Mar or early-Apr? The answer would seem to be because the orignial plan was to move new ore to the pad by year end. OK fine... but if that is true then why is it now expected to be ANOTHER month or more before new ore starts moving? Some 3 months delay from what they were saying near end of 2012. Heck on Jan 7 2013 they stated "At this time, we expect to start moving new ore to the expanded pad starting in February."
Are they really expecting people to believe EVERYTHING fell apart EXACTLY at the last minute because of a boiler failure that was supposedly fixed in less than 3 weeks? Really? REALLY?
NOTHING ADDS UP.
Caterpillar Financial Services Corporation
On December 6, 2012, the Company entered into a financing arrangement with Caterpillar Financial Services Corporation (“Cat Financial”) for $5,601,746. The funding provided for the purchase of three pieces of heavy equipment: one loader and two off-highway trucks, which were delivered to the mine site at the end of December 2012. The loan is amortized over 48 months and accrues interest at a 2.9% rate. Payments consist of a down payment of $560,000 followed by four consecutive monthly payments of $298,019, with remaining monthly payments of $97,845. During the nine months ended December 31, 2012, the Company paid $546,462 in principal, leaving an aggregate balance due of $5,055,284.