RE:Before it get boring......... I will make one last post to give my thoughts on the PP. It's sad, because I was hoping that we could get over the finish-line by means of warrants and options. That was looking extremely hopeful for a time. According to the latest financial statement, they brought a whole $2 million into the company treasury--a sum 25% higher than either of this year's private placements. But the money coming in by those means dropped off once the share price crashed. That crashing of the share price was nothing unique to Bayhorse, and happened to virtually all other juniors when silver plummeted, most of which are now down by at least 50% on the year. But the lower share price meant that a private placement became imperative in order to keep the story moving forward. It now seems impossible to repair sentiment and go for the warrants-and-options route again, which is why I am not even bothering to try any more. The heart-burnings and dissensions not only are not worth it in themselves, but would no longer accomplish anything useful. I have done my own part. I have not sold a single share and have tried my hardest to keep people's spirits up. But the fate of the company is now entirely in Graeme's hands. He either gets the job done or he does not.
Curiously enough, and as has been pointed out a number of times before, Graeme says in the 2019 Lobo Tiggre interview that "5 million dollars" was the sum necessary to go safely into full-scale production:
https://youtu.be/4zApsclnlTA?t=2187
If you add up the February PP ($1.7 million), the warrants and options exercised over the past six months ($2 million) and the recent PP ($1.6 million), you get about $5 million ($5.3 million). So he now has the full sum that he always said he needed. He adds in that interview that $5 million is necessary because "you need at least six months' operating revenue to be safe, because things always go wrong." Well, he was right about that. There was a permit problem at Payette, so something did go wrong.
In his April 2020 e-mail, he goes into more specific figures. US $190/ton at 100 tpd = $600,000 USD/month. So $600,000 USD x 6 months = nearly $5 million CAD. This accords with what is stated in the Tiggre interview.
https://ceo.ca/bhs?2fd57c944ae9
People whining excessively about the PP are generally oblivious to what is going on in other juniors. e.g. Blue Lagoon recently diluted for $8.5m and 25% of the share count. They still don't have their mining permit (it's about 6 months overdue), still are not mining, and may not be mining for a long while yet. Again, Pure Gold just today diluted for another $20 million even though they are now actually in production. The amount which Bayhorse are asking for is extremely reasonable by comparison.
Some people have brought up what they see as a high burn-rate in the latest financial statement. But the high burn-rate is to be expected: it is simply evidence of mining. As we saw above, 100 tpd requires $750,000 CAD a month. So the fact that Graeme is currently spending $500,000 a month in mining does not at all surprise me. The burn-rate is not usually this high. Last year it was only $250,000 a month, and in some previous years much lower even than that. At any rate, the PP will cover three months of expenses (September, October, November). It would greatly surprise me if we did not finally get assays or news of getting the Ocean deal done before December.
Nothing in the case for Bayhorse has changed. The DD about the potential in the mine, thousands of feet along strike, a thousand feet to depth, two hundred to width, with increasing grades up to an average of 40 oz/t, all the historical letters written by various geos and mining engineers, the geological theories as espoused both in those letters and in the technical report, the astonishing production and leverage figures, none of that has changed. If you believe that Graeme will get the job done and that Bayhorse will be cash-flowing its own market-cap once in full-scale production then this remains the opportunity of a life-time, even at $24 silver. So buy or hold if you believe that, sell if you don't.