RE:RE:RE:What's in the Q1 report?>> GCM has almost 2X as many current liabilities as current assets<<
No you are wrong, just look at their latest financial statement. Total assets $396.244M, Total liabilities $201.884M, Net Total equity $194.360M
I knew someone would mention debt. Just look at the Enterprise Value which adds market cap with debt. GCM EV is around USD$110M which is very low for a 160k oz producer. EV/EBITDA ratio is better than TGZ. They have convertible debt in 2018 that is mandatory convertible to shares at a much higher price than current market price which will eliminate that portion of debt, reducing debt to $99M. Plus they are buying it back with free cash flow, $15M FCF guidance for 2017.
TGZ is not perfect either. Their stream is equivalent to debt. They got around $138M as i recall from Franco Nevada which was equivalent to taking on $138M in debt. In the past they said the stream added $100 to AISC making it higher. Plus TGZ likely will need to add around $150M in debt to finance their project. Saying another company has debt is like the kettle calling the tea pot black.
auburn2 wrote: Ridiculous comparison. GCM has almost 2X as many current liabilities as current assets and is under a heavy DEBT burden. Additionally when TGZ went to 40 cents the gold market was in a state of capitulation never before seen in my lifetime and this was before Mimran had 20% of the shares.
ts9222 wrote: Yes that high $1078 AISC number and high AISC guidance for 2017 is preventing me from getting back in. I already made two round trips with tgz for good profit. Last time bought near 40c and sold near $1. I might go for a third round trip if tgz goes to extreme lows like last time when it went to 38c. tgz has big swings to the extreme which can make it good for traders. Right now GCM with high grade and $900 AISC looks more undervalued. 160k oz/y for 29M market cap.
staz wrote:
Don't want to piss on your parade, guys, but the Q1 results can explain some part of a sp depreciation. Strip ratio went to 22 from 8 , all-in sustaining costs are $1078 versus $825 a year ago. Everybody is focused on that GDXJ thing while the results are not that stellar . Most likely the stock will see a spike after rebalancing. But a new mine will require around $250-300M .With $6M in profit per Q you'll need 40 years to finance the new mine without taking on debt or issuing new shares. It's a good company but reading it's Q statements I don't see the upside events (except for the rebalancing of the fund which can give a temporary boost) in the short-mid term. I'm looking to put some money in this one but not sure if now is the right time.