GREY:NEVDQ - Post by User
Post by
quinlashon Feb 08, 2024 12:21pm
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Post# 35870245
NCU: Today's Update
NCU: Today's Update Not too sure who actually read it or who's just "reacting" to a SP movement however here are my thoughts on it
1) I appreciate the fact that the Company disclosed the whole story, both the positives and the negatives. No one wants to be fed pure positives without understanding the challenges a Company is facing
2) I like that they have many of the challenges addressed that members of this Forum seemed to be obsessed with.
3) Production appears to be close to what I had expected, a bit shy of where I would have liked.
4) The financing concern is a real concern.
If additional money is needed to bring the operation into 100% production and operating at a profit then either Pala will need to provide additional funds or another backer is needed.
How "easy" will it be to get another backer? That's really hard to say actually. The Company needs to present a business case for investors to show total potential return over a period acceptable to any potential investor they approach. Of course they will need to be approaching investors who have long-term investment goals and are patient enough to wait on a mining operation. The business case will need to address all risk factors as well as solid forecasting on Copper Spot Prices going forward. The additional minerals at the mine will also aid (to a small degree) in the forming of a business case.
The fact remains that Pala and others have continued to put money on this one. Those funds will play a part in the decision making process where Pala needs to consider writing that off or putting additional funds in to bring the mine fully online and bringing those investment dollars back.
Just my thoughts on it all.
GLTA
Q