TSX:SGR.UN - Post by User
Comment by
halcroon Mar 20, 2015 8:10pm
220 Views
Post# 23545795
RE:RE:RE:RE:Hey pf, waddya thunk?
RE:RE:RE:RE:Hey pf, waddya thunk?halcro wrote: halcro wrote: SGR seems to need to borrow about $3.5 million (U.S.) per month to continue to operate. Inasmuch as this is likely in addition to the revenue from gold sales, it seems that day-to-day expenses (without paying debenture interest, old payables, etc.) are about $3.5 million (U.S.) per month more than the gold revenue earned.
If I'm correct, then the mine, etc., under the present POG and the current operating system, is not a very attractive investment.
Revenue for the first three months ended March 31, 2014, was $14.9 million
Expenses were $22.6 million
Net loss for the three months was $7.7 million
Revenue for the second three-month period ended June 30 was $20 million
Expenses were $28.5 million
Net loss for the three months was $8.5 million
Revenue for the third three-month period ended September 30 was $12.8 million
Expenses,
excluding impairment of $71.8 million, were $17.6 million
Net loss for the three months was $4.8 million
Which sort of leads to the question:
If SGR was able to operate at a loss of $21 million over the first nine months of 2014, which is $2.33 million per month (and these costs include debenture interest and non-cash costs such as depletion, amortization and stock options), then why is there seemingly now a need of $3.5 million (U.S.) a month in cash...and the debt isn't being serviced?