Financial release on or before may 14th.Investors want to see the liquidity and cash burn situation. We will get a report before may 14th. If it looks good the stock will pop. The credit facility was amended, and they only need to hold at least 500 000 in cash to be compliant with the credit agreement. BUT that doesnt mean they will be able to keep paying the interest and remain compliant with the other covenants!
Bagholders are justified in not wanting to put any more money into this thing. But newcomers came across quite an opportunity at 0.50 cents. 50 million market cap.
It still is a good buy at 1.50 IF THEY GET THE MINE UNDER CONTROL. Distressed securities are where you get the windfalls, but there are risks. They encountered an inflow of water while drilling out doris. Must have not modeled the geological risk completely. They say it will stop work on it for several months. Lets hope there isnt water a bunch of other places either. TMAC going to the markets for cash is worrying, since shouldnt they be able to fund themselves if its a high qaulity orebody?
Im no expert on mining mechanics, but looks like there is a mix of problems with machinery AND problems with the geology which IS NOT good. If theres a problem with the mine and ore, its going to be hard to find outside capital. its all about getting capital right now.
This is for the risk arbitraguers / investors. Speculators were wise to put 1 - 2% of a portfolio here. You buy this stock knowing full well your investment can tank 99%.
Its all about risk management, you must respect position size limits. Must respect small caps as high risk investments. if you want to buy some small cap speculative stocks, dont put more than 10% of a portfolio into them, and diversify across at least 5-10 of them.
The company could go backrupt very easily. They got a lot of debt. As long as they keep paying off the debt and interest they can keep chugging along. But they need money. And the equity will remain worthless as they keep chugging along. Zombie miner.