James Hodgins
Hodgins runs a hedge fund. He is going to look at all negatives and ignore all positives if he is short. His statement that they will need to seek financing to grow appears to be inaccurate when you listen to company plans.
Cash as of last quarter was $220 million. Underground cost is $140 million, Mana expansion $100 million and they generate more than $40 million free cash flow per quarter, Current cash alone is almost enough to fund the two projects.
Growth plans are into 2013 so there should be plenty of cash to fund growth. As a matter of fact the spend is broken down by year for the underground. $30 million 2011, $70 million 2012 and $40 million 2013. Between now and 2013 there should be $300 million in additional free cash flow.
Quick math makes this $530 million cash with a requirement of $240million for both projects. If he can't do math I would think he should relinquish the title "expert".
Wes