RE: RE: RE: RE: Valuation correction... To be honnest I would have bought some RPG shares at 25 cents sometines in the year if we wouldn't have this $50MM sprott credit facility. The Interest Rate are very high and RPG can never pay it back or at least not over the next 4 years by using their inzernal CF.
If you look at the last RPG presentation you can see that they forecast that the cumulated FCF generated by SJT up to 2014 will be around $30MM. Not even enought to pay back that credit facility.......
So they will be cash trap up to 2015-2016. so 2 consequences :
1) either they can't finance their growth because of a lack of cash
2) or they will have to make another fundraising at 30 cents.
This $50MM credit facility is a big problem for RPG. They normally have to pay it back in 2013. So it means they would have no other choice than making another fundraising at 30 cents. So maybe I would come back when they fix this Credit Facility problem and buy some shares who knows :)
Best
Julien