RE:RE:RE:Sub one dollar comming!Curvature wrote: The gold price better not stay where it is or fall further or sub one dollar is a given! In fact serious problems may occur in the not too distant future! This one is on my do not touch list! Lots of upside but not just risky extreme risk! "Primero has $50 million drawn on its revolving credit facility that matures on May 23, 2017. The Company anticipates renewing this facility, but in the event full repayment is required, cash generated by operations may not be sufficient to repay amounts outstanding under the revolving credit facility in full at maturity."
number of mid to small size drilling and completion oil and gas firms were able to renew their debt earlier this year, when oil was hovering around 30-40 dollars with no recovery in sight.
the likelihood of creditors stepping in demanding full payment or taking away your asset, is very small. that being said, depending on the mac environment of gold at that time, the renewing conditions may not be favorable to the borrowers.
Bottom line, everyone is in the game to make money, send one go belly up is not helping anybody.
With regards to the NAFTA challenge,
Peso is absolutely in sh****t at the moment, the sentiment brought by trump has shadowed and will likely continue shadowing the Mexico economy in the near future.
It is hard to imagine mexico government keeps on playing hard balls with Canadians, their 2
nd largest trading partners.
And also didn’t Primero just add another BOD with extensive diplomatic experiences?
There will be a resolution, and very likely in favor of the Canadian miners.
With regards to the labor dispute.
It is Mexico, it is not Saskatchewan in the 80s under the reign of NDP.
it will get resolved.
the biggest uncertainty lies in the gold prices, if it crashes down to sub-1000,that will be the final blow to the already struggling miners, as the SP of this stock seems more likely to respond to the down wave of the gold prices, but not always catch the uptrend.
The gold has been staying relative stable these couple days, finger crossed.
Just my 2 cents