35 minute insightful phone call with Rob Buchanan 35 minute insightful phone call with Rob Buchanan of RNC Minerals this morning from @Matthew6v20 today on CEO.ca ~rnxpublic :
« I had a 35 minute phone call with Rob this morning. Very much appreciate his time.
His explanation was that they aren't sure if they will need the funds, but they are ramping up production, and they didn't want to get themselves into a spot in a few months where they needed financing, and everyone knew they needed financing. He said they were torn over it but the board thought it would be the best course of action as they start producing to avoid any cash setbacks.
I told Rob that it made shareholders feel like they didn't value us, and they valued institutional investors more by diluting our shares when they didn't need to. He wrote it all down and said he was going to take it to Huet.. said the majority of people are just calling with being angry/ belligerent
The LOC is already maxed
When we were talking about Mikey's interview with Graeme; I said I was a little nervous about why Sloan didn't give investors more assurance that they would be bringing AISC down.. and he said, that's just how Graeme is. He's working on the plan now, and he's not the type to disclose something until it's done.. I said, "Well, I think the CEO should likely follow that same example. I can't imagine Huet would ever make that mistake again?" he said, No he won't; he is hearing how people are calling him a liar and that's not how he wants to be portrayed.
He said that the R&D and banking side of Haywood are completely separate by law.
So both when Pierre asked those questions; he wouldn't have been privy to the fact there was an offer already available.
He said the mine plan guides will be coming out for the rest of 2019 shortly which everything will flow from that.
Also near term is the 45101 reserve.
The main reason for the financing is they are ramping up production and the board felt better with a buffer even if it isn't needed, rather than being in a position to raise financing. They had an offer on the table today. He said the market doesn't give favorable offers when you NEED financing.
I still think they shouldn't have done it, but that's why they did it. I'm not defending it.
Haywood isn't looking to make a $18MM deal at all time highs.. The offers come in when they know there is value.
I asked about Selby and why he resigned.. I asked if it was because the board didn't agree with his direction, or if it was because he wasn't a gold guy.. He kind of hummed for a bit and didn't give me much but he just said that Selby is more base medals and Huet is a Gold guy who has been around mines and gold production for many years.
I asked, "How long before cash flow positive?" He said he didn't know; the mine plan guides would go a long ways towards knowing that.
I said "with 1MM in reserve and expanding at depth.. why do you think the market is having a hard time with it?" he said because of the balance sheet. That the balance sheet is the number one thing on their agenda.. getting costs down, and ramping up revenue. That's the #1 agenda.
He said they're taking drilling from beta now and moving to the open pit.. He said; "we will be expanding that (Beta) resource for many years; our goal now is to get production up so we can produce more efficiently at both sites"
Another thing he said was that he the main way to bring AISC down is to mine more, so that's why they are ramping up. He said the main costs are relatively flat at the mine, so they more they can mine, the better.
He said the ASX listing should be coming in the first part of 2020.
They are determining what to do with Dumont. The name is confusing to some investors and they know that. They don't know if it's going to be a spin out or sale, but they know that it doesn't make sense to have it. They are a GOLD company now.
You're welcome friends. I'm sure more answers will come up as I read throughout the next few days, but that's all I have for now. I also want to disclose that I'm not a seasoned investor like some of the others here, so you may see me asking questions that seem obvious, but I'm just trying to learn as much as I can. Have a nice day! »