Forward hedgeThe release ponted out that te financiers wouldn't release there security without the hedge being covered off. The present fianncing really doesn't look that bad on the surface. You owe 8.5 million and need to deliver against the forward hedge. What seems to be the problem here. Management should just bear down to getting the production running up to snuff. The gold price is there to make a great return on every mined ounce even with the hedge. If they could pull it together and keep it on the track with a few cents per share earnings per year the market will price them accordingly.
From my read the capability is close to 40,000 ounces per year of production.
In 1 year they could profit enough to completely pay back the loan.
When are the next financials due out.
I would like to see the effect of the lower oil, (hopefully lower operating), lower peso(hopefully lower operating), and the rise in gold price won't be felt till the next quarter but if execution in the field to return to higher grade is bearing fruit.
This stock looks very undervalued.
1 solid years cash flow on 30,000 ounces of production at their rates at these prices should generate even with the hedge 200 minimum dollars per ounce and more likely a blended rate of closer to 3-4 hundred.
I am just a newbie in this stock. Is there something I am missing?