RE:RE:RE:RE:RE:RE:RE:RE:RE:Great news Goldred wrote: BC,
Do you think that SIC has enough cash in their current treasury to carry out their just announced extensive drilling campaign? I agree with you this is huge news and that Tim truly believes that they are on to something special here.
Regards,
Goldred
Goldred,
That is a good quesiton and I also thought of that today. So the below is based on facts and my thoughts.
The latest FS on SEDAR are the June 30, 2021 audited FS which show $15.4M of cash on hand. The September 30 quarter 1 financials will be filed prior to November 30. In several podcasts since June 30, Tim has stated the Company had cash in treasury of a slightly higher amount due to all the warrant exercises. The Company had a lot of warrants exercised in the run up from March to June 2021 in share price, about 20M warrants. The June 30 FS show about 13M o/s exercisable at $.39. So a lot of money has been raised with the warrants.
In any event, I think the Company had roughly 10M to drill left (give or take) out of the 50,000 metre program, and now it is expanded to 100,000 metres. So that leaves about 60,000 metres. Tim has said their all in cost is very low to drill, so I am gonna use $200CND per metre. At that rate, I budget $12M cost to complete the remaining portion of the expanded drill program which will run through 2022 per today's PR.
During this time frame, they have normal public company corporate expenses and also they are incurring survey, sampling costs of other land packages. They also plan to drill phase 1 at Grey River. This is added cost, so roughtly my estimate for these costs are minimum $2M up to December 31, 2022. Again, this amount could very well be higher.
Tim has always said, he likes to have cushion and as a junior miner, you never want to raise money from a position of weakness. So, in my view, they know what this is going to cost them. They will go to the market at a good point between now and early/mid next year to do a PP. My opinion this has already been planned as they would NOT announce this 100,000 metre program without planning this. This is all good, but the game here is to get the share price up and do a large PP with minimal dillution to shareholders (i..e adding in-situ value at a greater pace than dillution is occurring)
So those are the numbers and this program is now 100,000 metres because they will have the money or "have it" so to speak already. Further, no program gets this large without us being next to certain we have a winner folks.
GLTA
BC