RE:RE:Notes from the Q4 MD&A. I am not short, I have no position. I did not lie, in fact, unlike you, I posted the page numbers of the MD&A I pasted from. Maybe you should open it up. If you have contradictory info please paste along with the source or link. Otherwise we know who is lying !
They have a potential big liquidity problem because 2017 All in cost AIC *not asic* was 1348 which is greater than the price of gold. And when you include the hedging at 1260 they are underwater 88/oz ! Look on page 57 if you do not believe me. klondex guided for a much lower AIC but missed by several hundred dollars. If you want to believe Huets 2018 guidance for grade, production, and capex, be my guest, but how has that been working for you to date ?
The gold collar and forward trades are two separate hedging programs. The collars are inconsequential but the forward trades will be a disaster in 2018 because gold has risen above the price they are obligated to sell at (approx 1260). I can guarantee if they had closed out the contracts that would have been in bold caps at the top of todays NR. It is a terrible burden that allows them to pocket a few million up front but then get screwed when the price of gold goes up. They have not indicated any decrease in forward sales so assume the worst.
The stream to Franco will be gone, but they will have to pay a 2.5% NSR in place of it.
If exec comp is not an issue, why the increase in RSU's in 2017 and all the cheap options ? They continue to pay themselves handsomely while failing miserably on all metrics.
Capex will increase when they finally admit, Hollister ore needs a new processing plant, placing further stress on the balance sheet and a potential liquidity event (mid to late 2018)
True North NAV will be written down producing a large impaiment and analyst downgrades (late 2018).