RE:RE:News out on Q3marben100 wrote: Forgot to mention that $20m out of the $21m drop in cash was due to the volunatry debt repayment that fell into Q3? [even though mentioned in the Q2 results]
@Marben
No, I did not. But having said that, this quarter showed the vulnerability of EDV at a gold price below $1150/oz. At 1120/oz, there is no room to pay down any more debt. At current price of $1080/oz, IMO, they start burning cash very quickly, as after tax net earnings go negative. Also, the cash infusion from the La Mancha deal can evaporate just as quickly at current Gold Prices. So, how do they fund Hounde ??. Aha, now I see the rationale behind a reverse split. There will be issuance of more shares after the deal is completed and the dilution will take the float from 59 million shares to over 100 million shares to fund CAPEX and exploration, etc. They need 350 million+ for Hounde and they just will not have that at a Gold price below 1150/oz. And thene there are always "unforeseen" expenses for the 55% stake in developing the ITY CIL and exploration. As such, the existing shareholders, are fcuked.