Slate Grocery REIT T.SGR

RE:Debt is backed by real gold/silver in the ground .

[PruneFace]

Those 'well respected' wastes of skin have been saying the POG is going to the moon for years and has it? Let's just take the $50 million dollar deb, for example and ignore the other $20 or so million they owe (it might even be more, I'm not sure). First, the market cap for SGR is currently around $55 million. So just enough to cover the deb and one years interest. Second, let's assume the POG does go up to say $1600 US or $1800 CDN. They would net $100/oz produced based on the Q3, 2014 cash costs of $1690/oz (not all in costs). The deb matures march 31, 2018 so call it 3.25 years worth of interest, $13 million, plus the principle of $50 million = $63 million. At $100/oz net that would require the production of 630,000 oz or roughly 194,000 oz/year to address just the liability of the deb. Ya figure thta's gonna happen? Nobody will lend them any further funds given their pathetic history and questionable management and any further attempts at financing would result in the massive dilution that already exists, assuming they proceed with the KER merger, a share rollback etc. Anyone owning shares now will end up with nothing, like JAG. Anyone who thinks this mutt will survive in it's current state is hitting the bong too frequently. More likely is it defaults on the deb, declares bankruptcy and some other group of promoters buys it for pennies on the buck and washes, rinses and repeats. And in ten years you'll be right back here, deja vu all over again. IMO.