RE:RNC will blow through the $35 Million Line of CreditThe sale of the Golden Rose specimen (already sold at 50% premium) and some smaller specimens would be more than enough to cover the interest cost (at 10% per annum) if RNX draw down the entire amount of the Loc (C$35M). To pay the cash component of the HGO deal they only need to draw down A$15. ..and the interest cost for the entire year would be around A$1.5M. They still have King Henry and some medium sized ones to get additional cash.... Plus the profit from the 80,000tonne stockpile and the ramp-up operation from BH, and ore from Baloo.
You should read some of the posts on the projection of the potential profits, rather than basing your negative thinking on last year performance. It was true that the company was on the verge of bankrupcy, before they discovered FDV. Analysts concensus was that the company has turned the aound and their ratings are positive. The 35,000oz discovery wiped out all debt and gave it a chance to start the 40,000m drill program, 35,000m will be used to provide the new RE which is on track, end of the month. Now the company has its own mill (the savings is 35% of the cost of toll milling)...Do your own DD, but look forward rather than looking at the rear view.
If you don't like the future prospect, sell your shares, take your gain/loss, and move on. Why hang around wasting your time.
GH11
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BillionaireBoy wrote: and then the company will issue another Private Placement in order to pay for the interest on the debt. I hope I am wrong but given the activities of the past year I believe the share price will fall back below .40! New steady management may be needed for the company to follow a steady and prudent financial development of their current reserves. GLTA Longs