RE:RE:RE:RE:RE:RE:Indicated reserves up 14% inferred 41% as said before, their updated pea was recent with an effective date of Dec. 2021 so the independent geologists should have included some of that inflation. a lot of people must be scared of another argonaut magino cost overrun, but the magino study was done years ago and they did not do a recent update like gcm did. gcm upcoming pre-feas will be up to date. serafino talked about the possibility of using contract miners to reduce the initial capex, avoiding upfront cost of buying a new mining fleet.
with the higher inflation comes higher gold prices. typically mine construction includes pre-production ore, and they can sell that ore at a higher price which offsets some of that inflation.
we will soon see how much cash they have. gcm generated surplus free cash in previous years at lower gold price. the higher gold price now cannot be worse. recency bias from q3 lower production + the country delaying vat refunds + gcm holding some of their cash in bullion is making people think gcm generates lower cash than they normally do. holding some of their cash in bullion is paying off now that the gold price is higher.
Eap5522 wrote:
invest I'm not arguing any of that, but they need to be over-funded for Toro with inflation raging like it is. The convertible notes were a great move IMO, but I don't think they will be committing much cash to share repurchases or increased dividend at this time, unless the share price goes down below 5 again. Just my opinion