RE:Where do we go from hereThundersole wrote: Is there any other choice other than an equity issue to raise some capital.
If they don't do anything and have 350k a quarter in royalties, maybe they should just pay it out in a dividend, they could pay a couple cents a quarter;).
I'm sure that there isn't much choice other than an equity issue if they want to grow the company......
Reality will be a capital raising I assume.
Some equipment for sale - let's assume 2,5mio.
The Anterra Convertible bond - about 0,25mio/year - 4mio. capital
Sale/Cash Flow of/from the coal assets - no idea what that would be.
CSI - late next year if everything works out as it is supposed to be.
Canadian Zinc - 2015 if everything works out as hoped.
Mongolia - 10 years out.
Glencor NSR - no idea what this could be as I do not know what transporation ans smelting costs will be.
So looking at the last quarterly I see around 750k of administrative expenses per quarter.
So my guess is that the royalty should at least bring 1mio/quarter to cover our costs.
If they want to pay a 5% dividend they would need somewhat around 2.4mio a year at current share prices.
I on purpose did only do some calculations by the rule of thumb as they hopefully will cut back administrative costs and costs for project evaluation and really work hard to adopt their balance sheet to the current situation.
Bottom line: I think we will need the NSR from Glencore to cover our costs and without surprises from TBD or coal there is only issuing shares to raise capital. Question is: at what price? As there have not been a lot of good news from them I fear this will be quite punishing - especially when tax loss season is knocking at our doors.
As always: Just my thoughts. DYODD.
carinthian