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Core Gold DMMIF

Core Gold Inc is a gold mining company based in Canada with all operations in Southern Ecuador. The company primarily explores for gold and silver. Some of its projects includes Zaruma Mine & Portovelo Mill, Dynasty Goldfield and Copper Duke Project.


OTCQX:DMMIF - Post by User

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Post by standfiron Nov 30, 2019 6:36am
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Post# 30408314

Good Q3 results, time for a calm reaction, and lower debt

Good Q3 results, time for a calm reaction, and lower debtFlashcash, you're on the money, so to speak.

The results are very good.  Another positive - we've been waiting months and years to finally be in a position to be receiving offers instead of wasting time in court etc., and now finally good financial results on top, the cherry on the cake.

The phrase in the MD&A - about no guarantee about an alternative to Titan - that's a totally normal statement, exactly the kind that's ordinarily required in the quarterly financials.  So no need for any strong reaction there - good thing that our feelings about it are recognized, but really it's a typical financial-statement phrase.  My reaction should be calmer as well.  It's more to the point that Core is stronger now and can decide on its own terms, i.e. can require that only decent or proper deals be accepted.  So, time for a calm take on the new results.

Debt - really good that it's going down.  That's been the key part to Core's financial challenges, and now financial improvement.  I haven't read the Q3 in detail yet, no time, but if I understand ... We had a level of US$27 million not long ago, now down to $15 million, very good indeed - about cut in half, just what we needed.  Of that, most is still trade debt, much or most of which will be settled down dramatically - asking for proper prooff, receipts, documentation from the old days and such.  So those levels of debt could again drop dramatically in 3 or 6 months.

So in terms of essential financial debt, it's US$3 million if I understand - the $2.5mm Pender/Titan debt, and the remainder of the 30% short-term loan, which someone with quicker eyes than me said will drop the final $500k to zero in January 2020.  That's a huge change - cutting out all of the original US$1.5mm loan saves $450k per year.  Then the Pender/Titan loans will be paid down, starting with one of the pieces in March 2020.  The whole process accelerates - pay off debt, so less interest to be paid, and then that extra cash pays down more debt.  It's a virtuous cycle.

So finally Core Gold is enjoying good financial results.  Next steps, even on our own, invest in the plant and the whole process, bring production up.  The production levels, given all the turmoil this last year, are pretty good, and right in line with what was said at the AGM.

For those in the US, it's a very good Thanksgiving present.  For everyone else, an early Xmas present.  Good Q3 results.
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