Love it when Shorts start SQUEALING ! ! It''s normally a GOOD sign that they are worried.
Some of these people also have a hard time understanding manufacturing or reading MD &A's.
For example,
1.) when head grades and production are climbing (ie remember them saying head grade was up 20% in April and higher in May??) revenue is CLIMBING ! The more that happens the faster they reach profitability because the major expenditures are behind us.
2.) The company very clearly stated in their March M D & A that they have enough cash to cover operational needs for 12 months and that while they are not cash flow positive yet, it was "PRIMARILY" due to supply chain interruptions and reduced workforce and equipment availability". In other words, . . they would already be cash flow positive without those issues (ie shortage of parts, covid delays & lack of up time on equipment due to less maintenance people than they want (have about 2/3 of what they need)
3.) The company then clearly stated how they would address these 3 problem areas:
- critical parts are being stockpiled to mitigate the supply chain impact
- covid delays are significantly better now
- more equipment is being leased to improve availability while others are being worked on
- contractors are being used to shore up the maintenance requirements
All of these are very straightforward operational issues and solutions (I was in project mgmt for a fortune 100 company)
PS The funniest question was the SHORT who was trying to get them to say they were out of money and the answer was : We have $23 million in cash right now (ie MAY) and will be leasing more equipment and using contractors to get back on schedule. When the person's voice trailied off and they quietly exited the call I laughed and laughed and laughed ! What an IDIOT ! ! ! IF . .they were worried about cash they wouldn't have announced a 15,000 meter drill program to expand their resource estimate. That could have been delayed, easily.
Bottom Line : I personally will be adding shares all summer, while this great resource is cheap. Once they reach full production, these shares are going to jump in a very meaningful way.