RE:LeverageIndeed. So many ways to look at balance sheets.
On a previous video , John L , remarked the company is often approached by banks offering loans.
The company has shown good cash flow , so it should get good rates. Cash could be used to advance Phase 3 , or drilling or both. But the bonus of taking a syndicated loan is : most of the banks have a brokerage arm. Shares are often held in escrow to protect the loan. The banks brokerage is " motivated " to give a good report on the shares , to support the share price. I have seen it done time after time.
Also in the event of a takeover bid, cash on the books is given a multiplier of 1X. But even a good loan with years on left on the repayment schedule is given a higher multiple as an asset. The highest multiplier of course goes to the earning asset, the low cost mine/mill operation with large proven resources . Drill baby drill.
But it is possible to be prudent , and yet have your cake and eat it.
Lets see what our mgmt team can come up with post Covid.