Resource Capital Gold Corp GDPEF

My take on the NR

[lmcbain]

First off, it was good just to have a News Release and at least there is actually some content of merit. Here are a few thoughts, after a discussion with Jack post-release:

• The press release was actually written (or more appropriately last rewritten) about a month ago.The QP contracted to review and sign off on it (David Smith) was working with the information as of that cut-off a month back.
  • what this means is that as of about a month ago total production from the Dufferin was a cumulative 5846 oz. Less 3000 oz from 2017 and 700 oz from Q1-2018 that have already been reported, that leaves about 2100 oz from Q2, 2018 + most of July (about 550 per month on average). There will have been "some" additional production in August, but with the staffing down it will have diminished - optimistically maybe 400 oz.
  • 2100 means revenue (not profit) of somwehere a little north of $3m CAD  from April thru July, which is 4 months and I have been told the burn is about $1.5m per month in proper operation - so they have some cash flow, but not enough - they are still broke.
  • it should be noted that there was a reasonable amount of exploratory / experimental bulk sampling done in order to define "best methodologies" and those efforts were not overly efficient from a profit margin perspective in terms of production, even though they can be very beneficial in the long rung when moving to full production.
• the release also addresses the closing of the sale of the Corcoran - it is not complete, but there is NO more cash to be acquired as a result of it - ALL the payment has been received. Final Exchange approval remains.
• there was also commentary regarding upcoming exploration on both Tangier and Forrest Hill - I aksed about this and the reason it says "coming months" instead of any sort of an actual timeline is because it is dependent on an as of yet undefined refinancing requirement that we have all already discussed multiple times.
• the geological and production information included in the release should provide enough positive information that I do not expect bankruptcy to be a legitimate option any longer, but there is still a lot of work to be done to get financed again.

I hope this is helpful.

Salut,
Leigh McBain