Tying Up, Some Loose EndsPosting the Zoom meeting, on You Tube, was a clever idea! Kudos to Dany for doing that!
https://www.youtube.com/watch?v=bnaMMHzBEMc The best of questions were asked and also, quite well answered. Dany moderated this forum with panache and verve! Even Renaud Hinse appeared, quite sharp, for such an elderly guy.
Many items covered, were answered, as expected. However, the answers to some questions may have been, more revealing.
"A dividend is still years away" was one response. But "if the gold price remains high," a dividend "may be paid out in 2021". Mr. Hinse has been in this business for a long, long time so he understands the ups and downs in the gold market. He may actually believe that the gold price may collapse, after the covid crisis is resolved. But, if so, when might that be?
The US Government is almost ready, perhaps before Christmas, for another trillion dollar bail out package. In the new year, perhaps by March, another even bigger package, may be needed. Both Democrats and Republicans seem to believe, that this is inevitable! We might get another two trillion dollars, spent at that time.
Imagine what that might do for the gold price! What would that do to the value of the US dollar?
Since Mr. Hinse, as a major shareholder, has a lot to gain financially from a dividend, he would logically, be very enthusiastic, about paying one out.
But he would also be one of the biggest losers if such a dividend proved to become a major setback for the company if launched, prematurely. But it does sound like a great idea and would obviously resonate with everyone; if the company, could afford to pay it!
The American economy could get back on track once the vaccination process, has made its most positive impact. Most people would be fully employed again. But how long will that take? Months or years?
Now, we also know that Abcourt is using underground drilling platforms to guide their future stope development. That is reasuring news.
Abcourt had been unable to maximize the mineralized ore delivered to the mill, from the Elder mine, due to staffing shortages. The problem has been resolved. Others miners have become available for additional work at the SG mine. Good news!
The new stopes on levels 4, 10, and 11 have been opened and are being mined. Higher grade, ore should now, be available, to send to the mill.
Work continues to rehabilitate level 12, so stope develop, will start on this level too.
The Discovery/Flordin property is open to some future joint/venture. So it would appear that Abcourt has no present intention of mining these properties.
We might get a 70/30% division of financial interest, subject to a gradual dilution of Abcourt ownership to a 2% NSR, if Abcourt can't carry, its share of the cost.
For the benefit of all Abcourt shareholders, if further money is to be spent on them, and they are not to be mined, then at some future date, they should be sold. Seen in this light, they may be considered, as worthy of further exploration. A proper 43-101 resource definition will need to be done.
Some J/V might be also be in store for the Abcourt-Barvue mine. But that could mean, a lot less money, for company shareholders. But perhaps, a little, is better than nothing?
Perhaps, another and better option for the Barvue property, might be a streaming contract to some royalty company, in return for some upfront, development capital.
However, I believe that Mr. Hinse, as conservative as he is, will use good prudence to make the best deal that he can with the Barvue property.
Mr. Hinse is going to mentor some new recruit. Elder and SG are special mines. No ordinary mining engineer will get the full time job until he gains the experience and understanding that he needs. This could take some time. I still think that this persistant old guy, still has some great affection for his job, and may be a little reluctant, to let it go!
Hinse believes that the Elder mine has a least 10 good years left and maybe more! It would seem that he may feel the same way about the Sleeping Giant mine. It may have to be awake for quite awhile before it gets a chance to slumber, once again.
The Elder and SG mines are going to be very busy operations by the middle of next year. Everyone has great expectations, now that shareholder anxiety, is largely over.
The gold price and Abcourt shares, are rising once again. Money printing continues!
What's not to like about that?
There will be many more zoom meetings,
And other opportunities, for good investor presentations
A good head's up, is often, all a investor needs to have!
All the best! Java