RE:RE:RE:like taking candy from a baby To reiterate, the previous management of Argonaut Gold proposed spending nearly $70 million on CapEx at FC during 2024. They also estimated that the operation would either incur a loss or, at best, break even during that year.
Notably, the company hasn’t proposed any exploration in their technical report. The mine operates at a loss or, at best, breaks even, processes very low-grade gold, and has limited reserves and resources.
The stock price might be dropping due to a surprise equity offer, possibly around 30 cents. The short pressure could be coming from OTC naked short selling, similar to what happened before with Argonaut Gold during their equity offer; it might be the same firm attacking or potentially colluding, as the company's cash reserves could be nearly depleted.
It’s a strange situation where shareholders pay workers and managers as the stock price devalues and the company dilutes with RSUs and potentially additional shares from a possible equity offering. The company needs the funds, as shown in the picture. I don’t believe lenders will lend due to the possibility that FC is a poor-quality mine.
Why do I believe this? Ask yourself: Where did Owen Nicoles go? Richard boasted about his prior performance and indicated he would unlock the blue skies at FC. He just disappeared along with the two exploration properties in Ontario. Could it be that he didn’t find anything? Is it possible the technical report has no exploration because Owen determined there was nothing to explore? Could it be true?
There are many unanswered questions as this situation continues to unfold. Richard Young, the sly fellow, insinuated that the fair value was in the dollars while he sold the company off for pennies; he and Vinny seem to have disappeared as well. Sadly for Richard, the story is set in stone.
