RE:RE:Financials looking at the MDA they did 450 oz in 10 days of May so if they can duplicate Q3 and do about 80 days should be close to 4000 oz. So more like $9 million in Q4 revenues, but cost of sales is the key. Will they at least have a positive gross margin, or at least positive ebitda?
In December they took a $3 million hit to inventory and charged cost of goods. Looks like this quarter there was a reversal of $1 million so this is good.
i like that they are deferring capital on the mill to preserve cash flow.
they did spend $1.4 million on exploration & evaluation - i presume that will slow given the limited cash in the till.
they do have till August 9th to decide on drawing Tranche 3 of $4 million so additional cushion there at least.
$1.6 million of cost of sales is non-cash depletion, so about 10% of total cost of sales.
in the end, the financing was ugly, but clearly a do it or fold up shop was other option and that's why it was so ugly.
nozzpack wrote: $10 million per quarter is just 3000 ounces of Production and my estimate is 7000+ ounces for Q2, so another equity raise at exit June is unlikely to be needed....might even be in cash