Is another Equity Financing on the horizon?I smell another equity financing on the horizon. They've run up in the PPS going into 2020 new year, on no news, has same hallmarks of the run up into the 2019 year. And, that run up resulted in equity financing etc. Remeber the grades on two deep historical drill holes announced during the financing
MND has maxed out the $40M revolver loan which comes due at the end of June/20. As of September 2019 investor presentation, MND's foCash and Cash Equivalents is $23M USD. The recent PR states capital expenditure (average) of $45M of whiuch $8M is required for the Bjorkdal tailings storage expansion. Also, with the lowering if the 2020E Au Eq. production by 10,000 oz (to 18,000oz), it ceratinly paints a "can't meet the debt repayment" picture for "more financing is needed". I mean paint.
Being generous on the reforcasted Bjorkdal 2020E, 2000 less Au oz. equates to $3M US. This is 37% of Bjorkdal tailings storage expansion. The skarn deposit is right beside the infrastructure as stated in the PR. Why don't mine this rich deposit in the next two quarters to pay down the debt.
Obviously the drill results must be stellar becuase of the insider buying made by a BOD member and then run up on no news. AND, don't tell me has to do with the POG. MND's price action rarely follows the POG. Nice distribution of shares in the framed price range of $1.25. Now the stock price is being hammered down for the financing. To conclude, sell shares at a $125 price and use the proceeds to buy the shares at a lower strike price of $1.10. It needs to stay above a $1.00 to attract larger institutions.
If it walks like a 2019 run up duck, and it quacks like a 2019 run up duck ... it must be a financing duck. Scrouge duck will be fattening his pockets very soon.
Well done.