How Much Money Does CRJ Really Need? Well it looks like CRJ will be turning over dollars for the rest of the year - not banking anything. I suspect that is going to make it hard to fund a mill expansion at Seabee.
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Remember from the CC, Neil said this:
I think that probably cost you if you started up an operation like Seabee from scratch, it would probably cost you about $4,000 as capital for every ounce of annual production. I believe Seabee can be expanded for a fraction of that number because of the existing infrastructure.
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So he wants to expand production by 50,000 opy.... so at "full price" that would be a cash need of $200M! But Neil said a fraction of that? Huh? Half is a fraction...and that would mean CRJ needs $100M in order to expand Seabee! With a market Cap of $100M how is CRJ going to raise $100M to build out Seabee?
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Even with the fraction being 1/4 - CRJ would still need to raise $50MM. They don't even have a down payment on any loan. Only loan they'll get is a non-recourse loan - one that requires hedging!
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This looks as bad a GBG's situation.