RE:RE:This is insane
I agree with you Luker. I do not think this equity raise is a bold move to buy some more property. I think it is more like Bragagnolo being more conservative. When you look at the Q3 numbers we supposedly made 3c per share yet our cash balance stayed the same. That makes me more suspicious that part of the profit is an accounting trick. The 7.5% tax is based more on gross operating profit rather than net income. That will make it somewhere between $1-1.5 million per quarter. Then there is also the .5% tax on revenue. That will be another almost $200k per quarter. These taxes are going to be taking real money out of the company coffers. It would not take much of a drop in price before TMM is likely to be bleeding cash. Sprott extended their loan in July at 8% and waived their 1% annual fee. In December, they extended the loan but this time charged 9% plus a 2% annual fee ( 300,000 shares @ $1.20). That tells me that Sprott finds Timmins is now a higher credit risk. I am a bit of a gold bug so I think gold is going up not down. But I am fine with TMM being prudent and preparing for the possibility of another downdraft in prices. Bob