RE:Conference call "highlights"This seems a fair summary. I'll go over the report again with less haste, but my first reaction was not to buy back in.
Perkoa is a total Hail Mary, Caribou is a cost sink, Rosh Pinah is clouded by uncertainty (ore dilution -- must check the FS; is this a concern for RP2? -- and the usual broad error bars over feasibility estimates).
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kramaswamy wrote: Overall - oof. Not good at all. In no particular order, and with text in parenthesis being my commentary:
- Caribou and Perkoa are essentially being treated as "let's get what we can out of the ground in 2022". There is no plan or expectation whatsoever for 2023 and onwards. They are doing exploration, but nothing which we can expect to see material results for next year.
- No new projects announced. Seems they are putting all their eggs in the RP2.0 basket.
- Part of the financing for RP2.0 will come from a Glencore loan. They are planning on rolling their existing debt into a new financing package, with that extra addition from Glencore. Target seems to be around 200M in total debt for RP2.0.
- No indications on any of the financing being driven by equity (probably because their equity is worth less than the paper it is printed on)
Then, in terms of the questions - there was literally only one person who asked questions. The caller asked:
- Will the Caribou LOM consider Restogouche and Halfmile? Guy responded with a yes (but it sounded more like a "stop asking us about Caribou")
- Will Caribou ROL project be capital intensive? Guy responded with a yes (but again sounded like he wished people would stop asking about Caribou)
- Perkoa seems to be done by year-end, is there a plan to continue into the reserves? Guy said yes, but not to expect any material results for a few years even if they do find something
My overall take is - they are throwing a hail mary towards RP2.0. If *anything* goes wrong whatsoever, they're toast. They'll be sitting with a pile of debt and nowhere close to enough money to pay for it through existing mine operations, and no way of raising more capital through equity.