RE:RE:RE:Patchh; what are the requirements if the warrantsWe are also very close to another production update and, I am guessing, some visability on the May (AGM) share consolidation.
Aslo the hedges are for about 715,000 pounds of copper per month for the first 6 months. Depending on grade and mill through-put this is likely about half or, toward the latter part, a third of our production. We still make money on it based on the $1.86 cost. I calculate that the hedged portion earns us about $750,000 per month.
At say
only 2,000 tons per day, and a blended grade of, lets say, 1.3% copper, we get 1,500,000 pounds per month of copper so about half of that currently gets us about $2.24 cash-flow ($4.10 minus $1.86 cost = $2.24)
So $2.24 x 800,000 pounds = $1,800,000 + $750,000 (from the hedged copper) = $2,550,000 per month already (subject to assumptions above...DYODD)
N.
westcoast1000 wrote: What happens if the Jan warrants are called when the share price gets to .20?
The warrant holders then must put up the .20 for each share purchase, surrender the warrant and no longer get the leverage available to them from the warrant structure after they have reached the strike price. Then they get their shares.
However, the big warrant holders here are Pala. They would not do something that disadvantages themselves.
With cash starting to come into the company from production after July 1 when the hedges end, I would not think they need the cash from the warrants right away.