GREY:DRGDF - Post by User
Comment by
bengramon Jan 27, 2014 12:44pm
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Post# 22138321
RE:Hey bengram: One could certainly see his way clear
RE:Hey bengram: One could certainly see his way clearYep, I think we should have some room for cushion around the price of gold. They should be producing profitably, especially in the second half of the year. The possibilities are pretty exciting the further you go out. I've done some back of the envelope calculations and can easily see a AISC in the mid to high $800s once SCAPEX dials down to normalized levels in a few years.
My big worry is the $63MM in interest and principal scheduled to be paid this year. Combined with the CAPEX guidance (admittedly less worisome given management's ability to delay some of these items), the cash level looks pretty tight.
I haven't taken a look at structure of the converts or the existing revolver, but I would hope they don't preclude management from the possibility for a small amount of non-equity financing in order to get DGC through the year.