Ramping to the Motherlode...Kiena Deep...I really like how Management has stepped up the plan at Kiena...normally you pay as you go namely, ramp down and mine at each level as you go...pay as you go.
However, the plan is now to get to Kiena Deep as soon as possible and once there mine the exceptional high-grade and blend it in with the resources at the upper levels that they left behind, so to speak. In otherwords, they will mine "upwards" to catch up with development and pay the bills with Kiena Deep.
Kiena Deep is going to get their costs down significantly...management is expecting to reach an AISC (All in Sustaining Costs) of below $1.000 US per ounce...fantastic! Revised numbers will be released in the second half of 2023.
As of the end of 2022 they have drawn down 55 million on their available credit facility...plenty of room remaining namely 95 million. The interest rate is 7.6%...also they have sold about 1.6 million shares @ $8.21 average on their ATM program (At the Market) for procedes of 13.1 million dollars. Cash position is 33 million.
Management has been prudent...the debt is very much manageable and I see them paying it down to a balance of zero sometime in mid to late 2024. There is a lot of room to continue to use the ATM to shore up the balance sheet...the share count is only 144 million...lovely!
I have stepped up my buying...the opportunity is that good...I now hold 6,000 shares @ $6.25.
The company is very much vulnerable at this time to a takeover bid. However, I believe any buyout will be of a friendly nature...management will make sure of that...so much at stake!
They are recovering nicely from the stumble...it was just that...not a fall.
All the Best!
Digger0144