RE:RE:Ascot price down a lot today after production reportI get your point. The reason for the continued downswing in AOT's price has to do that they are in a "technical noncompliance" of the covenant of the most recent financial package. On June 30 Ascot had $12 m in the bank, and spent $35 m during the second quarter.
From my stock broker's report this afternoon, concerning the need for additional financing (by Brian Quast):
"Management is evaluating the potential requirements for additional capital spending, including an inventory prepay facility and/or a modest equity financing in order to maintain a sufficient cash balance through the commissioning process and meet the company's debt covenants".
Mr. Quast made the following changes to his short-term forecasts:
Q2/24E:
revenue, from $67 m to $3 m;
EPS , from $0.04 to $(0.02).
2024E:
revenue from $288 m to $223 m
EPS from $0.16 to $0.10.
2025E: small downward revisions.
Mr. Quast maintained his "buy" rating with a $1.00 one-year target. My own view is that, yes, there will be a new capital financing announcement coming up, plus a disappointing 2Q financial report, following this production report. So Ascot's price will continue to stay depressed. But the mine is getting built, and it is moving to commercial production. GLTA.