OTCQX:QEXGF - Post by User
Comment by
jfan22on Mar 22, 2021 5:47pm
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Post# 32855119
RE:RE:RE:If Newmont makes an offer on Questex will you take $1 or $3.
RE:RE:RE:If Newmont makes an offer on Questex will you take $1 or $3.Great points!
When I spoke to Tony last summer around the time of the PP, he said that drilling in the Golden triangle was significantly more expensive than usual due to covid and other issues. I believe the ball park range was around $250/m, which seems to me to be at least $100/m higher than usual. I think that's also partially due to SKE's incredibly aggressive drill campaign which has about >10 rigs and 450 employees on site.
I have no idea what drilling in the area costs now, but if it hasn't come down significantly I would be very surprised if they announce a drilling campaign before securing some sort of financing. As of Dec 31, 2020, the company had around 2M in current assets after subtracting current liabilities. ~$1.6M of that is restricted cash for exploration activities.
Without financing we will be lucky to get a 5000m drill program, which is not enough to test what's been defined as high priority targets so far. We'll probably need 10-15km to do these properties justice. I would be very surpised if we make it to the end of April without at least a $2-3M raise, property sale or JV. I suspect institutions and smart money are waiting to see one of these things happen before taking/expanding a position.
Just my opinion here.