Press Release - Credit Line revised upwardsNote that the line increase is in 2 stages:
1) Stage 1: from 40 Million to 80 Million - needed to secure Inventory volumes of supplies/consumables for mining and additional costs associated with moving toward production commercialization (paste plant commissioning/startup)
2) Stage 2 : from 80 Million to 150 Million - needed for growth in working capital when commericial production starts. Essentially to seed the funding the cash conversion cyle. Where increased working capital is caused by new production staff, Acounts Receivable from Gold sales (typically 30-45 days to collect), Inventory of ore and costs associated with WIP, financial contracts/performance bonds etc.
The signal here is that the commercialization date is soon upon us. As previously stated the target is for sometime in Q4. I'm expecting it to be in September or October. Duncan is always trying to under promise and over deliver as a mgmt philosophy.
Looking forward to becoming a mid tier producer and seeing a rise in the stock price above $20 in the next 15 months. We will need some exciting exploration news to do that. I think it will be the announcement of the Borgo Zone being another Rydell shear.. That should set the stock on fire.