RE:RE:While waiting for shares, might as well... Indeed, Psych01, with $10 million in cash from Alamos, they are certainly under significant pressure. Their so-called potentially legitimate updated tech report for FC suggests that they need an additional estimated $45 million for CapEx in 2024.
Interestingly, there is no budget allocated for exploration in the life of mine plan. It’s clear that the company has no intentions of expanding the current life of mine plan.
Given that the AISC is significantly higher than the price of Gold, it’s likely they will sell the operation.
It’s worth noting that no one would be interested in buying a company with such a high AISC, especially when the tech report doesn’t reflect the AISC, which raises suspicions. Investors might also be hesitant to buy based on the fact that the company has failed to release the drill results from a drill program they previously stated, while managing Argonaut Gold, that the drilling was mostly concluded and results would be incorporated into the updated tech report, which they failed to do.
Raising equity may not be a viable option, and if they resort to the debt market, they are likely to be naked short sold into bankruptcy given the low stock price and the minimal value of FC. Equity financing would not add any value but would significantly dilute the shareholders.