GREY:GDPEF - Post by User
Comment by
LeftBookon Feb 09, 2019 9:13am
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Post# 29341624
RE:RE:amount owing to creditors
RE:RE:amount owing to creditors
Jack Cartmel's letter
https://www.pwc.com/ca/resourcecapital
It lists the amounts owed by :
Resource Capital Gold Corp (RCG),
Maritime Dufferin Gold Corp (MDG),
Maritime Gold Corp (MG),
Flex Mining (FM).
The four components owes money to each other.
MDGC and MG owe each other $11.3M and $11.2M.
There are lesser amounts owed between themselves.
They all owe Sprott Lending $8.49M
The four components are documented and totaled separately.
I substracted off the amount owed to each other to arrive at a subtotal owed to others.
MDGC $16.07M
RCG $2.9M
Flex $0.12M
MG $0
Sub Total $19
+ $1M for internal imbalances
= $20M
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It is roughly equivalent to the tax loss credits, say, $20M
In the long run the amount owed to creditors and the tax loss credits are a goose egg.
In the short run it is a liquidity crisis.
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The mine has a pre-tax value of $121.1M over a 10 year lifetime.
Ballpark $12.1M/year
That's $12.1M/year all expenses in.
The PEA pg 207 has similar numbers in the NPV calc.
$20M owed / $12.1M per yr = 1.65 years worth of gold from Dufferin.
Pg 5 of the MD&A has a 1.3 year pay back.
Once Dufferin is bootstrapped there is still Tangier and Forest Hill.
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Annual expenses are
$36M ( = 21,600oz * $1250 / 0.75 loonie )
- $12M pre-taxt NPV per year
= $24M/year
Current debt is less than that. So, more or less expected.
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Bulk sampling was never expected to break-even per the PEA pg 207
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Dufferin has an estimated 216,000oz valued at $89.2M post-tax
Tangier 93,000oz $38M post-tax
Forest Hill 280,000oz $115M post-tax
If the mines are similar, and they probably are not, then there is probably enough gold to cover the $20M of debt and $8.5M presently owed to Sprott Lending
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Sprott's 30c warrants have would have brought in $8M.
But that depended on a shareholders paying 30c/7.5c or 4.0x book value
$8M have helped pay off short term debt but more cash was needed by design.
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RCG needs to consolidate the debt and pay it off.
Probably by design.
As a going concern ...
It needs a larger credit facility.
It may need more shareholders but at what dilution of book vs payout
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