CGAHopefully, we get newson the SAG mill and updated circuit in the near future. CGA has been on timeand on budget on most everything else, so hopefully CGA will meet the end ofOctober deadline on getting the circuit up to 6.5 mpta run rate. Will beinteresting to see what the insurance proceeds settlement amounts to, but all Ireally want is Masbate operating at 6.5 mpta.
FWIW, I am opposed tothe 10 mpta expansion. Rather than spend cash on this expansion, CGA needs toimplement a dividend policy. First CGA needs to pay off its long term debt.Then pay off its gold hedges ahead of schedule. Once the debt and hedges aregone and they have surplus cash, then CGA can expand.
Believe CGA should payout 1/3 of its cash flow via dividend. My vote would be a modified GOROapproach:
1) 1/3 of cash flow todividend
2) 1/3 of cash flow toexploration/development of Masbate mine and Community Relations
3) 1/3 of cash flow topaying down long term debt and hedges.
All junior/intermediategold miners need to adopt the GORO (Gold Resource Corp) approach as outlined intheir presentation slide below:
Cashflow (Mine Gross Profit) and dividend focused.
Companylong term policy:
·1/3cash flow for taxes
·1/3cash flow targeted for growth
·1/3cash flow targeted to be paid back to shareholders as dividends