RE:RE:RE:RE:RE:RE:My email to GCMplus marmato has only a pre-feasibility study without proven & probable ozs. straight bank debt requires a bankable feasibility study which requires a lot more drilling to prove up the ozs, more cost, and more time.
gcm split the financing into all 3 forms of stream, equity, and gold note debt financing. an equity investment has the biggest risk, so it got the most juicing up with warrants to attract investors.
did it ever occur to you that gcm management was not trying to rob shareholders with the extra warrants but it was to attract investors into a risky project without proven & probable ozs in a not safest country in the world? (even though colombia is one of the most stable countries in south america in terms of government and judicial system, most investors don't view it as such)
and management/insiders invest in the financings not because they are criminals but because there is not a long line-up of big money investors who want to take on that risk?
and the insiders later on exercise their warrants to reduce their own risk and give cash to the company. coincidently they have a profit because they have done a good job operating the company with the share price rising. had they done a bad job, there would not be any profit taking on warrants and options, and the complainers will be happy that there is no insider selling while the share price is dropping.
(i am just stating the opposite point of view, i don't work for the company lol)
invest234 wrote: "Juby won't be relevant for 10 years AT BEST."
it will be relevant when they announce drill results on juby. drill results don't require 10 years.
that is what all explorers do. they announce good drill results and the share price jumps up. good drill results for explorers in ontario canada get a big premium to their share price/market cap. explorers with only 1 million oz gold in ontario are getting large market caps in this bull market. 4 million oz is worth a lot more than that.
"Just do standard debt or better yet fully finance it with the streaming deal and Segovia FCF."
have it ever occurred to you that they tried to get standard debt and the banks refused? for that location they need to juice up the debt to attract people to buy debt, or the interest rate would need to be extremely high for straight debt.
they don't finance with all stream because you can buy back debt, but you cannot buy back a stream. when marmato is producing cash they can buy back the gold note debt, but they cannot buy back the stream.
they are using segovia fcf to buy caldas. the around $300 mil initial capex (including interest during mine construction) is too large for segovia fcf to cover it all. think of it as a
Joint Venture. they don't need to have 100% of the project. they can put less cash into the jv, freeing up cash to diversify into other projects like goldx and cash for large exploration program at segovia. if segovia generates extra free cash, they have the flexibility to buy more caldas shares to increase the % of the jv. that is better risk management.
Moogul wrote: They advanced 14 million cad to CAldas on June 30 so that's where the FCF went.
Your other concerns are real. I sold all my shares a few weeks ago. GDXJ is up 24% over the last month... GCM is down over the same. The Juby aquisition was just plain dumb. Sooooo dumb. Just funnel cash into Caldas for their actual maramato project... and/or continue to invest in GLDX. That is enough... Juby won't be relevant for 10 years AT BEST. More likely irrelevant or a money pit and relevant in 20 years. Meanwhile they did those stupid notes again for maramato. Just do standard debt or better yet fully finance it with the streaming deal and Segovia FCF. The stock is undoubtedly sooo cheap but as people have criticized, its cheap for a reason.