RE:Thanks Wineaux for the RBC reportThe analysts concern about financing is valid. Go back to the Q1 conferencew call presentation and look at slide 8. This goes back to the refincing of the debt. The company had previously agreed to 5.5-6.5 million in quarterly principle payments with a an initial maturity date of the debt set at July 31 2020. The maturity was later extended to July 31, 2022.
Just prior to the Q1 Conference call the company negotiated a relaxation of the principle payments to 2.5 million quarterly principle payments but the maturity of the debt was brought forward to June 30, 2021 with 120 million coming due.
The concerns on cash seem to come up with regularity at each quarterly filing. Because the company keeps missing the recovery targets. Management can't forecast the cashflow accurately when 20% of the cash is lost in tailings. This remains to be the biggest problem with the company. The price of gold is up. The company is finding gold everywhere they drill. They have a great regional play with many unexplored target anomolies.
But the recovery issue has dragged on far too long. I've been following this saga for almost 2 years and the recovery issue continues to plague the company. I know they will solve it at some point. But all the quarterly announcements on refinancings (Maverix being the latest) come about because of the low recovery rates. Analysts don't like to see problems drag on like this and management has not met the selfimposed timelines to solve the issue.