RE:RE:RE:Sorry, one last post...re: john the p.o.s. at IR and promiseAnother VERY INTERESTING COMPARISON Qtr over Qtr I don't see anyone really commenting on the financials which actually shows cash burn not as severe:
Q2 ending cash balance @ $ 41.5 M
Q2 endings metals inventory @ $ 26.7 M
Q3 ending cash balance @ $ 20.6 M
Q3 endings metals inventory @ $ 43.1 M
Net change in cash =
- $ 20.9 M Net change in metals inventory =
+ $ 16.4 M "Net Effect" to drop in liquidity =
- $ 4.5 M This corresponds exactly to the increased range of G&A expense.
This figure also consists of the ramp-up cost increases specifically at Hollister discussed in the call.
Think of it as a net loss to the cash balance of $ 4.5 M, but management has elaborated this in the call...this is what happens when 2 mines are ramping up. There will always be issues. It sucks!
But, at least this is now explained through analysis. The other slight positive is the CFO's last comment:
He says this...
G&A expense for Q3 was $5.1 million. G&A expense increased from 2016 due to cost associated with our growth. For example, we increased staffing levels with the integration of our two new mining operations and we incurred additional costs in 2017 related to our first year as an SEC domestic filer for items such as legal, audit and consulting fees. So our new full year guidance for G&A is $20 million to $22 million and is expected to be approximately 80% of revenue. But at the end when commenting about Q4 cost guidance, at least fortunately says this to end his statement:
As planned, our capital spending for these categories is expected to decrease significantly in the fourth quarter as compared to the previous three quarters run rate. The expected annual totals are towards the low end of our current guidance target. We expect to increase our cash balance by year end based on the projected increase in GEO’s sold, the reduction in metal inventory, reduced capital spending among other items. Basically cash balance will increase in Q4 which is the main market fear...clear as day....this sparked the huge late morning sell-off. As I said, Q4 will be a repeat of Q2 from a Finance perspective, BUT PLEASE EXECUTE THIS QUARTER. SHAREHOLDERS ARE GETTING KILLED HERE PAUL & GROUP. At least there are logical points to explain the financial variance.
JIN
SHAREHOLDER
JintsuGehan wrote: Not much "glimmer" but from the conference these last two paragraphs from Doolin are most important to show some rays of light...Q3 was probably the worst quarter in years financially and operationally bringing ramp-up at not just one, but two mine sites. Reminds of Pretium taking huge hit in August-September then recovering big after announcing Q3 production results. Look what Doolin said:
At Hollister our Q3 ore advance rates are over 30% higher than the year-to-date average. Our ore tons mined per day in Q3 are more than double the year-to-date average and our Q3 ore advance is providing access to the higher grade stoping areas.
At True North, September ore advance rates were more than double the year-to-date average. Waste advance rates in September were more than 30% more than the year-to-date average and approximately 70% of our stoping fronts for Q4 are developed and are in the process of being mined. The momentum exiting Q3 is carrying into Q4 and we are confident in our plans for the rest of the year.
The other issue that is troubling is the cash burn this quarter and why such an increase in G&A expenses this quarter that raised guidance in this aspect. It was never really well addressed even if I think the first analyst asked about G&A.
The rest was pretty much already known, but the heavy cash burn was NOT known before the earnings release and spooked the market even though they still have $ 43.1 M USD in metals inventory. They need both a high high qtr of production and great sales quarter at high gold price. Q4 could then become a Q2 2017 story and see a recovery over next 2-3 months in SP. All about execution now.
JIN
goldminer01 wrote: Coming soon. They are late on almost everything this year.