RE:RE:Is there anything I am missing?gcm did not choose expensive financings on purpose.
unrated companies don't have a choice. they can either take high interest debt like gold notes or sell cheap shares. miners with no profit don't even get the choice of high interest debt, their only option is to sell shares to survive.
things change. now that they are rated B+ they can get cheap financing. s&p and fitch recognized that gcm was making a lot of money, that was why they changed. when institutions recognize gcm is making a lot of money and diversifying, then institutions change too. like gdxj that recognized this and added them to their index.
lumpy13 wrote: Been in GCM 3-4 years and it's always been the cheapest gold producer around.
My sense is that most institutional investors don't touch GCM because the game the mgmt/board has played in the past. Expensive financings, which are extremely lucrative if you could get a piece (I tried, but never could) and continual financial machinations buying and selling assets (and never sure if insiders were benefiting at the price of minority shareholders).
I keep hoping things will change. A significant first step was the recent financing without any kickers. Also, will be interesting to see if they can develop the Toroparu mine. They say they are fast trracking it (maybe in production in late '22, if I remember corrrectly), but I'll believe it when I see it.
You will need to be patient and, like all gold stocks, is correlated to the price of gold, which has been relatively stagnant the past year.