RE:The offering of $90M is a good development I'm very happy to see the key sharehlders step in and solve the looming bullet payment issue. I'm glad to see that managment is kicking in 5% of the offerring. I didn't realize previously just how tightly held this company was. The release indicates that 75% of all stock is in "Strong Hands" (institutional investors). That is great news for taking the company higher and if a unwanted takeover bid occurs. I don't believe a takeover bid is coming anytime soon because of the ongoing production and recovery issues the company has been struggling with.
But these operational problems will be solved and the gold is in the ground. So I see little long term risk here. The short term risk is a drop in the price of gold and/or the weakening US $. Of course a weakinging US $ could also strength Gold if investors are worried about global currencies.
I'm not encourged by 1,550 tpd... when nameplate capacity is 2 x 2,000 tpd. But I understand that when equipment is installed you need to shutdown some3 production. Hopefully they are stockpiling ore when the circuit is down