GWA Group Ltd V.GWA

RE:RE:Merry Christmas and Happy New Year

[rad10]

Toweringmars wrote:

Hey Muskoka, 

I do hope they manage to right the ship here, but based on the recent funding announcement and board appointment I'm not feeling the confidence.

Burning another 10m on exploration and defining the resource? Its clear at this point that the foreign entities that control this company want to further de-risk the resource before they bankroll some real financing to get this going. 

Personally I think we've been beating around the bush so long that we're burning the little glimmer of hope we did have to get into production. Greenwater advancing this money for exploration is one thing, but the fact that the maturity date is only 2 years out and at a 12% rate is kind of a kick in the ol' rumpus.

Theres no way they manage to pay down other debt and have enough free cash flow to pay this back by then, and negotiating from a point of weakness has done nothing but keep this in survival mode. I'm not sure there are any other options at this point, but im skeptical. The one positive from this is that the loan is unsecured, but realistically GWA will never bite the hand that feeds, so come maturity they're going to end up giving another large slice of the pie here away in the form of equity.

I dont have much hopes for the low grade development ore on the surface, certainly less and less as it oxidizes with the passing of time, but thats another story. Ideally Northern Sun gets its act together and finishes the mill upgrades sooner than later, but I have no real updates there.

Hopefully their Christmas party at the Port went well and brightens their spirits. Ideally all the contractors get paid with this financing and things get back on track. Just wish they would outline what the real plan is. Instead of small tid-bits here and there.

 

toweringMars and dumpster fires is like ham and eggs.  They just go together so perfectly.