RE: RE: Cash flow The only way CRJ keeps being cash flow positive is if it gets higher grade ores or the POG rises. But hey! POG is now below 1700 per ounce, so that has to effect cash flow for 4Q!
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Look, in the 2Q CC it sure appears as though McMillian's plan to "stay alive" during periods of low POG is to High Grade the mine! That is a great way to stay alive short-term, but the problem is that it only leaves lower grades for future mining. High grading has been the death of many junior miners over the years.
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Other factors one needs to realize with the rosy projections is that the CASH needs here are pretty big. They need cash for development and drilling of the Santoy Gap. No cash and that "potential" gets pushed off into the future. What about previously mentioned "plans" to take Seabee to 100,000 opy? I guess the recent cash crunch of the last year has those plans put on hold. Where does the money come from to mine at Madsen?
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What are McMillian's projections on costs to develop a mine at Madsen, in spite his comments that make it seem like it is a turn key process? How many tens of millions of cash they don't have, would it take to get Madsen up and running? Oh, but WAIT! Where are the drill results from Madsen? Me thinks some have been waiting TWO YEARS for significant results and that new keeps getting pushed off into the future?
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Oh and just wait until CRJ comes out with the PEA for the Amisk project and it shows HUGE CapEx costs to get that mine running. Take a look at what happened to peer RIC's shares when it announced high CapEx costs for one of its "great" projects! Gee, is another BIG hit to the CRJ share price looming on that "news?"
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Problem with CRJ is that the "potential" here is not going to get unlocked with the extra $250K per quarter that one poster predicts. Real growth will come when Seabee is a 100,000+ opy mine, Madsen has a fully funded plan to produce 100,000 opy and Amisk shows promise to spin off free cash flow.
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Good luck buying "potential" with no cash and little cash generating possibilities!