May I ask last summer update replay? it's just for FUN....Raise US$ 200.0M...hmm...i don't think they could pass investor's due diligence....first, investors will look at financials... then do some forensics, go through numbers to assure correctness....
Most interesting funny facts are as below;
1. 2020's was the period of gold sales...then in the Financial statements (FS) there is big loss..
2. But suddenly, this year STGO's FS became profitable...only around 8k oz sales of gold then profitable....illogical
3. Let's do some analysis: when you produce & sell around 32k oz gold with loss then only 8k oz gold make it profitable...what's the Break-even-points in there? Why STGO need then, set 60k oz guidance?
4. Gold spot continues falling, USD/MNT forex rate is stable since late 2019's, but FS shows STGO has gain from forex & + EPS (earnings per share) ... are they became gold/forex traders?
5. Financial costs dramatically decreased from negative (US$ 21.0M) to positive US$ 316k .... what the hell is that? Shareholders seeing red screen since mid of June...below IPO SP, far down from C$2.15 Sprott's baseline....Then why STGO has a "Financial gain" instead loss? Means STGO has changed their method for calculation debentures revaluation, but they have to note it in "significant changes in accounting policies" section...STGO noted: "...Finance income for the six months ended June 30, 2021 amounted to $1.3 million compared to finance expense of $10.4 million for same period 2020. The difference is primarily related to change in fair value of convertible debentures derivative component..."
6. WTF is "..change in fair value of convertible debentures derivative component.." drove $10.4M expense jump to $1.3 million income? What a "material changes"....
7. STGO confusing & jumping between cut-off grades....nonsense, put mineral estimation cut-off grade into MD&A...instead "Break even" cut-off grade will be much helpful...
8. DRA's says below 0.5 g/t cut-off grade is waste, above is ore....My calculation based on Q2 results shows 0.22 g/t, which is economically unprofitable...Interesting, how they scheduling blasting & mining?
"...Cut-Off grade is the minimum grade required in order for a mineral or metal to be economically mined (or processed). Material found to be above this grade is considered to be ore, while material below this grade is considered to be waste...The most simplistic way to determine cut-off grade is through the
break-even and internal method..."
9. Who is responsible for STGO's reporting & internal control? MNP says "..Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. ."
And all above was under MNP's eyes....wants to be next Arthur Andersen LLP? If BDO requested re-audit, then, in my view it's a good decision....