Note To Management (cc To OWNERSHIP)
This little ditty responds to management's desire to
"explore NON-DILUTIVE FINANCING OPTIONS".
The current scene for M and A in this country is a tough saloon.
IPO activity is down 98% from levels of 2 years ago.
It sits at a paltry $200 million.
And we all WITNESS and a few of us ANALYSE what is necessary TODAY
To lock a deal.
In a word, future cash flows are less useful.
Why?
Because commodity volatility has become extreme.
Look at charts of uranium, nickel, palladium, cobalt, lumber, etc.
What is more important, in current conditions, is to be able to access FUTURE FUNDING.
Management has done an amazing job with the labour, money, time available.
A Wishful expectation for the TOTAL RESOURCE OF THESE 3 decent properties
To be identified might be 10 - 15 million ozs.
Here below, this lowly RatPatrol offers 3 suggestions;
1) Drill out Wels using as much gov"t funding as possible.
Grades here are comparable to Coffee But much less than Snowflake down the road.
2) Put Wels up for sale.
3) Use proceeds to drill out Si2 to bring its identified resource closer to that of Mojave.
At this point, mgmt can rinse, wash, repeat.
REMINDER not to let Si2 go for scrap; we all realize what happened to
THE ORIGINAL Si !!!!
K2 is poised today to become a $300 million company.
But mgmt's APPROACH to this goal will determine whether.....
This pilgrimage stops at Vanity Fair or falls into the Slough of Despond.
You guys may all know this stuff.
Questions and comments are welcome.
JMHO