Contacted Verde and asked 3 questions:1- Has management started talking with BNDES regarding financing, or initial talks have not taken place yet?
2- The ten million or so that Verde has to raise through equity, will that be after the Financing structure announcement with BNDES or before?
3- These delays in coming up with the financing structure are naturally going to delay the start of the project and when we go into production, correct? Any idea when they are thinking that the Phase One would be built and production starts?
Response:
"Thank you for your email. BNDES has not contacted the selected companies yet as they are giving the selected companies the opportunity to appeal any of the results, should they wish to do so. The Company has no plans of doing a financing at these price levels and given our cash position, we are fortunate that we don't need. Which means that we do not plan on doing an equity raise anytime in the near future. As per our pre-feasilibity study (PFS) issued end of March, construction is expected to start in 2015 and production is expected to start in 2017. If you have not seen the PFS announcement, I've pasted a link to the news release below as well as one to the full report, which can also be downloaded from our website.
Regarding your comment if production could be delayed, I can only give you a very general answer which goes for all mining companies. I think it goes without saying that if any junior mining company does not have the adequate funds to start construction, then production plans are delayed until the capital necessary is secured. Between now and 2015, if capital markets improved tremendously, I think the financing plans would be quite different for most mining companies looking to secure funding for their projects."
There seems to be no substantial news between now and 2015, when Verde & BNDES will announce the structure of financing. I suppose that is why impatient investors are leaving the stock, and the price is declining.
Anyone know what she meant by this?
"Between now and 2015, if capital markets improved tremendously, I think the financing plans would be quite different for most mining companies looking to secure funding for their projects."