RE:RE:RE:How to Get Operating Mines for Free >> So any security issues , no artisanal mining?? <<
They just fixed that problem! The illegal artisanal miners came to an agreement with both the government and GCM. Read the news! As a result, it is like GCM is instantly getting operating mines for free. CNL is not perfectly free of that problem.
>> Well, they produced more than 100k oz/year <<
Their trailing 12 month is 165k oz/yr and growing. They have been steadily growing. With the illegal miners working for them now after their recent agreement and plant capacity being upgraded by the end of this year, their production will definitely increase.
>> balance sheet doesn't look good. Negative working capital <<
They have vastly improved their balance sheet. The remaining $10m negative working capital is from Marmato contracts that they are not using and don't need that they want to cancel or re-negotiate. Look at their latest recent filings and you will see that their accounting firm has removed that negative working capital warning in their MDA filing.
>> only 3 mio cash <<
That is because they have chosen to fix cash at that level. They put excess cash in a sinking fund for buying back debt. That fixed cash balance does not mean they are not generating cash.
>> increase in long term debt <<
This statement is obviously WRONG. They have been buying back debt and reducing it. A large chunk of that will convert into shares at the choice of the company at a much higher conversion price than the current share price (the 2018 debs). It is not pure debt. Those $46m 2018 debs will disappear and convert into shares at a conversion price of currently 60% higher than current share price. It is like somebody buying shares at a much higher than market price to eliminate debt. Like Newmont buying shares at $4 when CNL was under $3.
>> Free cash flow was only 3 million, how do they wanna pay down all the debt? <<
As above, $46m will be eliminated when the 2018 debs come due and convert.
They pay most of their income tax in the first half of the year. That $3m free cash of Q2 is in H1. H2 they will pay much less income tax (they said this in the conference call, listen to it). Look at the last year financial statement 2016 for H2. They had $8m and $7m cash to pay down their payables (working capital improved by $8m and $7m in Q3 and Q4).
They are also going from low to high grade in their company operated mine, and with the illegal miners now working for them, production will increase and cash flow will increase.
When i first posted here earlier this year, CNL was $5 and GCM was 9c ($1.35 post split). Now CNL is $3.24 and GCM is $1.63. CNL has gone down a lot while GCM has gone up. Obviously GCM has outperformed CNL so far.
Max_Value, i want your Max Value crown if GCM outperforms CNL at the end of this year!!
Max_Value wrote:
Well, they produced more than 100k oz/year , but balance sheet doesn't look good. Negative working capital, increase in long term debt, only 3 mio cash, ...
Free cash flow was only 3 million, how do they wanna pay down all the debt?
All of that explains why Gran is valued that low.
mAx