OTCPK:MEAOD - Post by User
Post by
btrevorbon Apr 22, 2015 2:13pm
182 Views
Post# 23653659
Current status
Current status The additional cash infusion will be good for the status of the balance sheet, but the dilution factor is quite high as at least 22% new shares will be created, increasing the total outstanding share count to just over 360M.
Raising the cash and effectively extending the debt will be an important near-term catalyst as it will allow Metanor to have some more room to breathe. After the recent operating performances it became clear Metanor would have been unable to repay the debt in time so there was no other solution than paying the price needed to extend the debt.
It will be imperative to increase the production rate again as Metanor needs to hit that sweet spot of 4,000 ounces of gold per month to benefit from economies of scale (as the fixed costs can be spread out over more produced ounces, thus reducing the cost per ounce).
Bottom line MTO must live up to it's own projections or it will be cash poor once again before the end of this quarter. Is that an echo I hear (P.P>>>P.P>>>p.p