Y93H1979
(94)
| September 12, 2022 07:58 pm
I was just looking at this. Wow, what a low blow, not to mention the timing (close to 2020 lows). I was never particularly impressed that they had to resort to borrowing $185 mil from Sprott, who in my OPINION is a lender of last resort (loan shark). I bet that Sprott will be taking their pound of flesh in that financing while retail gets hosed.
Look carefully at the terms, the last $85 mil of that loan were dependant on "completion of equity funding". So basically, to meet their timeline (works beginning late 2022), they had to do the equity funding NOW. Also not a good look when one of the directors was dumping stock couple months ago. I really hope that construction goes to plan and they achieve commercial production. I don't own, but if all goes well, holders will get they money back. A 200koz producer in Canada will be worth multiples of the (diluted) MC if making money.
Hopefully GENM management can avoid the pitfals MOZ faced. The stream was/is a HUGE deal, as it really takes the pressure off management in their financing negotiations, and has provided options. Stealing that mill from Hycroft was also a big deal IMO. MOZ never managed a stream, probably hard when Franco had a 2% NSR already.
I know we've all been impatiently waiting for financing news, me especially, but better to wait for the right deal than rush into a bad one.
Y93H1979
(94)
| September 12, 2022 11:43 pm
Another reason for the size of the raise was a huge blowout in CAPEX compared with the DFS. From $305 mil CAD to 480-490mil. Let's just say $305 was being wildly optimistic. Yes, max capacity was relatively small at 4mtpa to the mill, but they needed a 40km powerline and a camp in a relatively remote location.
They also waffle on about sustaining costs being brought forward into initial CAPEX or some excuse along those lines. Basically that is saying we need to do more prestripping. (This project has an incredibly high strip ratio). This was bad planning on the part of management. Inflation does NOT account for a 50% increase in CAPEX!
How inflation will affect GENM is obviously yet to be seen. prices are almost certain to increase, which is why I always harp on about the significance of the mills being secured.
AGTCTTWW
(1784)
| September 13, 2022 09:15 am
Here's what I posted 3 weeks ago, when not everyone agreed with me that MOZ was being shorted.
RE:RE:RE:marathon gold gets federal environmental ok
A quick look at the MOZ IIROC Short Position report and recent trading history would indicate to me that short sellers likely have it in their grips.
This was definitiely short selling to manipulate the price, the timing was too perfect for the financiers.