Fire River Gold - upside/downside For the benefit of those here that are interested. This stock is not going to increase in price for at least the next many months. There is a far better chance it will go down than up for at least 4-5 months.
There are two major factors. One, will Fire River be able to pay the first installment on that loan, plus 12% interest in late May? Maybe, maybe not. If they don't, this stock is going to crater. If they do they're still not out of the woods as there are monthly payments thereafter, including 12% interest, until the entire loan has been repaid. What will do this?
The CIL circuit needs to get up and running - and fast. It will be ready to start up in the next week [or so management claims] but it will take 2-3 months, perhaps more, before they can operate at full production. Once they have it to fulll production they can process a lot more tailings which should produce more gold. But that assumes no problems starting up and running the CIL circuit.
Without the additional gold production Fire River will be hard put to make that May payment. If they do make the payment they still need to 'prove' to the investing publid that they can sustain those payments for the following five months. That will take at least 2-3 payments which takes Fire River into at least June and perhaps July or August. So there is NO good reason to risk buying or owning at this point as the downside is far more likely than an upside. It is more likely they are cash poor and having to cut back in drilling. And, if reports are true, they've laid off their security force? NOT GOOD. This suggestion does not apply to Victor2009, sclarda, FastTrade and inspectorX. THEY should back that truck up and LOAD UP. ;)