RE:RE:Boris ..... you forget CDN gold is over $ 1550.... The Wank conveniently forgets that BGM isn't producing gold, hasn't been producing gold since early December and, according to Hammer and BGM's IR, no one knows when or if BGM will produce gold again in the near term.
Therefore, BGM has to buy gold in the market to pay Sprott's nut.
From the looks of it, BGM will have barely produced 9,000 ounces in 2914/2015 and hasn't repaid an ounce of Sprott's loan
BGM's all-in cost to produce for the first three quarters was $1.50 for each revenue dollar. That can't be bettered in the final quarter, it'll likely worsen.
At $1,600, Sprott will be owed $13,384,000 for 8,365 ounces of gold at May 31, 2015.
To repay the Sprott nut and cover the estimated cost of production, BGM needs to produce 22,200 ounces of $1,600 gold at an all-in cash cost of $1,000 per ounce just to pay Sprott and break even...and that doesn't leave diddly to cover any February 28, 2015, payables except the Sprott nut.
Ooopsie...what about the 75,000-tonne-per-year limit on the BL mining permit, the pit design due to high grading, and the lower grade ore????