The ship is sinking... The company is out of money! Credit line is forzen! If revolver is demanded company is bankrupt! Can managment find equity to bridge this to asset sale or profitablity, maybe, but how can you depend on a managment that couldnt even project cash flows amd has continued to disappoint?
Equity issue maybe coming but at what price? Even if there is a sale of an asset it will most likely be a firesale.
No wonder major investors have been bailing out for the past year. The risk here right now is too high, might be time to throw in the towel!
Liquidity Update
At June 30, 2017, the Company had a working capital deficit of $35.1 million. The Company was not in compliance with the financial covenants of its senior revolving credit facility ("Credit Facility"), and as a result $46.3 million of debt was classified as current and included in current liabilities. A waiver of these financial covenants was obtained subsequent to quarter end on August 11, 2017. As a result of the waiver, further drawdowns on the Credit Facility are currently restricted and the Company must maintain a minimum cash balance of $1 million. In the event that the Company is unable to obtain amendments or waivers from the lender in the future, the lender may demand repayment. If the lender demands repayment and management is unable to secure alternate sources of funding, the Company's liquidity position could be impacted.
Management is currently focused on increasing free cash flow at the Parral project and is actively exploring alternatives to de-lever its balance sheet. These alternatives may include seeking strategic investments, acquisitions and divestitures of or joint ventures on certain of the Company's assets. There can be no assurances that the Company will be successful in obtaining any of these alternate sources of funding.
Read more at https://www.stockhouse.com/news/press-releases/2017/08/14/gogold-reports-q3-financial-results#lzFijdHVJhe1vThp.99