RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Earning are out!!!!!!
RusticHit wrote: your average is in Dimes so no worry for you but if some one bought in 7-8 range or above this is big pain now and these mining stocks are never easy to buy and hold i think Financing is coming
No financing is coming. While capex for plant 2 was a big cost overrun from the original projection and both production and delivery costs per ton bear close monitoring, ongoing cash generation and current working capital is sufficient to run this operation. But now that plant 2 capex is completed, I'll feel far more comfortable when debt is substantially reduced especially as they consider another large capex project for 2024 or 2025. Net margins are still healthy but 2023 hopefully bears fruit from both a product sales growth standpoint along with significant improvements in operational efficiency. Plant 1 has served its purpose but if you run the current per ton costs through a model using MOP spot prices from 2 years ago it's easy to conclude the company would be completely unsustainable. I appreciate that Cris said on the call that they plan for the worst and hope for the best because to assume elevated MOP spot lasts forever is a fools game. Margins are historically very thin, so in these fatter margin times its "make hay" and sell sell sell. If we are lucky enough to have many years of MOP at or above $500 then Verde will be a cash making machine.