RE:RE:RE:RE:RE:RE:RE:RE:RE:Joe wants more than 120 million! For what?North
The 47mil in debt is a solid bet at 68. Unless an asteroid hits mine you should get paid. The equity is an entirely different situation. It may be a complete dead stick or a 30 bagger off these levels depending on how things play out imo.
Although P supposedly took into account the tax issue and stream issue when it impaired the value of mine I think as of now the tax issue makes a near term sale that is good for shareholders impossible.
Maybe as you say a 5 million loss is a sure thing in q4 and based on previous seemingly impossible missteps a loss at san dimas seems a sure thing. I respectfully disagree based on the fact they have a huge stockpile of ore at site leftover from q3, they ran 80% more ore through mill than usual in september and stated 2400 tpd is on deck for q4. So, they should be close to double the q3 output . That is a lot of leverage to upside profit if they get close to those goals. Going forward, 1800 tpd is projected from 6 of the 28 best veins for 2-3 years without exploration. On top of that they were holding 8 million dollars in gold and silver inventories in latest q3 in addition to ore and supplies. That is 3 million more than 2nd qtr and 7 million more than first. That higher inventory amount left over from q3 should be a positive for q4 cash flow as no costs to convert to gold. We will see
They had 22 million in cash in latest q3 and should have received 5 million from mux of restricted cash due in november. Approximately 20 million of vat is due from mexico and based on last qtr of vat received maybe they got 7 -10 million this qtr. Free cash flow is up for debate but as you see 5 mil loss I see 3- 5 mil gain. We will see.
They owe 35 mil or so on revolver. It seems like a manageable problem now. We will see.
I believe P can keep lights on long enough to make deal with Wheaton and mexico. Thats my bet. So I think we see another extension tomorrow. Im betting anytime from now fwd P announces some type of refi. Im also fully aware P may pull the rug on this trainwreck anytime.