RE: Reality check ?thanks uncoverer for reminding us of the other side of the coin. We do have debt which is partly why we are where we are but 120M or so of debt for someone producing 250K ounces of gold per year should be very normal. Agree the tight dealines that we are operating under for the debt covenants in May and June may be tight as the very high price of gold and our low cost of production may not be enough to settle this debt however, it is very close by my calculations and we should be in a great position to refinance all our debts once the Q2 numbers come out and prove that Q1 was no fluke. Look at the info in the Red Back NR from today, they raised 175M with production and cost per ounce very similar to ours...I think we could refinance if we had to (aka if our board was willing to work for us, not againsts us).
In February, Red Back raised $165-million in an equity offering, one of a number of mid-sized to large miners that have taken advantage of rebounding commodity markets to raise funds.
Following a sharp drop in resource stock valuations last year, signs of an economic rebound have put the issues back in favour, while credit markets have thawed somewhat following last year's freeze-up.
This has prompted speculation that larger players could swoop in to pick up junior miners that are still struggling to fund projects.
Glorieux