OTCQX:BGMZF - Post by User
Comment by
yaponskion Sep 25, 2013 7:03pm
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Post# 21767967
RE:Just out on Mining News
RE:Just out on Mining NewsLets see who is smiling when it comes time to pay back the gold loan.
If BGM can produce the gold and keep operations flowing then this was a great deal. But that is a big if IMO... remember those huge quarterly losses any time BGM produced gold... money to fund thoses losses has to come from somewhere but now that the mines are collateral on a gold loan getting a further loan is going to be a bit more interesting IMO.
Still, I do tip my hat to FC. Gold loan from Sprott is impressive play. Whether it is short sighted or not remains to be seen. I mean you have to look at the accummulated defiict BGM is running -- it is over 100M and how many ounces of gold were produced for that 100M? Now, Bigbab can convert that to per ounce cost using his trusty spreadsheet and you'll have a rough lower bound on the number required to produce those 12K oz owed to Sprott. Oh, dear, alert just in from Bigbab... the 100M in deficit produced less than 12K oz of gold... oh dear.... a further 85 to 100M required to complete delivery....
Ok. A bit of satire in the above, but you should get the drift.... lots of share money and BGM haven't been the greatest combination for producing value if you look at past financials... just saying....