Esther1 wrote:
Good post Challenger and good info
Some Questions
1) the low end of their second half guidance is 295,000 which is only 15,000 more than the 1st half.
2( They have 48,000 ounces to deliver at 1635 and 59,400 that will be called away at $1,381, all US in second half
3) Why are they issuing equity at 2.06 when they could easily forward sale the same amount of $ into 2021 when production will be booming. I for 1 would have loved 60,000 more ounces forward sold into 2021 at close to 1900 US. vs equity dilution.
4) I do not see any insider buying either in last 6 months.
5( depreciation is generally correlated with units of production so it will be greater.
I am with you on this seems to be a good value stock, if all works ( mostly) out as advised.
I guess that is why we are all still here.
Make no mistake, OGC will probably report losses in both coming quarters. Even without Dipidio writedown, which will be staggering if occurs. That is only accounting as you say and operating cash flow will be positive.
The only thing I can figure for equity dilution vs selling future production for $ today is bank
insistence. More equity is a buffer for banks without giving up the security of the company having full cash for product in the year sold. Hopefully I am wrong and in any case it will
all work out if company performs.
It is a legitimate concern until we see where that money goes exactly and what the actual production will be in the second half. If anyone is not concerned and believes the numbers for 2021 then they should be buying this stock with every dollar they have. I will not be adding and will be quite glad if my current holdings appreciate the way they should.