Out of cash-Default June 30th
They reported on the restart last summer they had enough cash to bring the mine up to sustain itself and were in great shape. This was the case until Thursday night NR.
Then they did a private placement saying New Golds 15% ownership positioned them for the future to bring the mine to 800 TPD and transition to 1200 TPD. This was two months ago. Everything was a go with a good ramp up and no issues. Two months later they are out of money and can't pay the debt payment June 30th let along put capital back into the mine to build it up and just recently learned they can't ramp to 800 until late Q4 and are now short 22 million in revenue which more then likely is 30 million.. Plagued by equipment break downs, lack of manning or skilled workers and questionable ore body composition as indicated by the need to increase infill drilling. Even if they got the money any upset at all and they are back in a mess.
New Gold management must be shaking thier head wondering WTF they just did. I guess the answer is restructure wipe the debt and BNP and Appian get thier money back and we the share holders get nothing. This seems to be the reality of where this is going. 2000 AISC still. Gold at 1800 and can't make a dime.
Wow.