RE:current reserved and updating reserves
That is correct, a mountain of gold. The LOM of Segovia is only a fraction of its true potential. In recent months you could analyse out of Resource Update(s) and reported data that they have been mining non-reported ore with higher gradings. This is the best of worlds. Mining ore that is not (yet) in your resource update at higher grades. This show the enormous potential Segovia has. Conclusion: there are more ounces at higher gradings in the ground But now they have to prove that, and they are going to this with an increased and fastened-up drilling campaign. If you want to attract institutional support, you must document reserves. Late February they first tried a 25mm Equity offering which was scaled back to that 20mm Convertible Debenture Bought deal. It was then a little suspicious to me, for the company again raising cash while having it on their balance sheet and being strongly cash flow positive. But that got answered few weeks ago with MM Assets Management buying the full bought deal (remember, it was announced in advance that management would participate 10% of the deal. It was reported that MM bought the full 18mm. Or in other words, this deal was ENGINEERED to allow MM Asset Management to go long in size. Another point I want to make is the increase in spot gold. The $120 jump in spot gold since May is good for an increase of GCMs EBIT of 35mm CAD on an annual basis. So that is on a fully diluted share base +0.5 eps before taxes. (=$120 x 225.000 x 1.30cad / 68mm shs) Last thing to note, outstanding short basis 920.000 shares reported on 14th of June. If they are not long the warrant, those guys will get smoked, teared apart and buried. This will cause additional buying on the stock price. Make no mistake. here at $4.50 is a more obvious easy buy than it was a month ago at $3.50. I expect us to trade quickly through the $6 level and double digits longer term.