RE:going concern risk Scary going concern. Their costs are very high right now, $1700+/ounce, but they still produce a tiny bit of gold and silver, albeit at a loss... They warn about how the preliminary ore assessments were not conducted, but they ran into usable grades building roads... I think there's really good deposits on their properties. I think they are sandbagging for a better price in gold. They can lower their costs even raise capital, but are blase on it with the price of gold being what it is. There's only a little over 22M shares out after investors lost their leverage after the 10:1 reverse split. If there were demand for a profitable, penny producer the share price would go up very fast with only that many shares out... JMO, I'm not any kind of metals/economist expert, but I do know some things...
They've been keeping this thing going for a long time, probably to keep the locals employed while establishing a tax write-off for the insiders when they want to use it - or it becomes profitable with a much higher price of gold... One thing is for sure, the US dollar will be an issue down the road as the deficit continues to soar upwards.
It's a crazy world that says the deficit doesn't matter. Most are managing their wealth as though it doesn't - and for now, they are right. Interest rates are low, and as long as the US can meet the interest payment on the deficit it is not an issue, but someday the size of that interest payment is going to be in the media spotlight, and maybe because the US is struggling with its size... When that happens, (and you can't fight the math - it will happen,) we will be in the midst of a crisis due to the recognition that the US deficit is no longer tolerable.
When? who knows, but those that have spoken of astronomical prices for gold are referring to this type of crisis. Anything gold becomes a good hold should that ever happen. I know one economist that says maybe in 5 years...
I wonder if the deficit becomes an issue this coming presidential election. Trump has spent such that the deficit has broken 22 trillion dollars now... Will anyone address the meaning of a US deficit that continues to increase more and more as time goes on...?
One other thing: investment advisors that put retirement plans together that don't include the tradition 10% gold insurance/protection are doing the clients a tremendous disservice. The various retirement-planning institutions returning to including the traditional 10% gold holding could impact the gold-stock market tremendously, since I think there are a lot of those institutions that greedily let go of including gold in client portfolios in favor of earning interest in other sectors. That trend ought to be changing back to holding gold now, if for no other reason than realizing the current administration is increasing the deficit more than the previous one, which increased the size of the deficit more than all previous administrations combined, largely due to 2008 being the year when the banking system teetered on collapse...
In these times, knowing what we know, I'd stay away from any investment advisors who don't insist on at least 10% gold as being part of their client's portfolios. This is "a word" that every gold advocate out to spread. This advice is prudent and gold-stock, share-price positive.