RE:RE:RE:RE:RE:Gold priceMVargas wrote:
So, 190,000 oz in 2020 + 210,000 oz in 2021 = 400,000 oz of which 100,000 oz affected by call options = 25% of production.
Regardless of the total production, 40,000 oz in 2020 and 60,000 oz in 2021 are hedged. It may be much higher than 25% of the total production (if they don't deliver) or much lower than 25% if they get it together and execute tight without blaming anything on Murphy...
Bottom line: CDN 41,000,000 from the profit will be given away for no added benefit to shareholders (based on current gold price in Canadian dollars). If the AIC are much higher than anticipated in the FS, they may not make much profit for the company and shareholders, however the hedged ounces must be paid at the set price.
This is just another level of gambling with shareholders' money... 41Millions would have gone long ways to pay down debt or have some decent exploration programs.
It would have paid 80% of CAT loan - or to put that in a different perspective, they could have doubled their site fleet or replace all equipment with brand new equipment at the end of 2021.
One of the worst hedges I have seen in decades!
It will all come to surface as they will have no choice but to publish 2019 results before the end of April and then file the quarterly earnings statements as required by legislation.
I see some changes coming to this management team soon, Orion will drop the hammer early 2021...
GLTA