RE:RE:RE:RE:John McConnell has been terminated by Victoria Gold mdjBrown
What you are saying is mere speculation. If YTG did not act any number of creditors could have forced them into receivership. Yes I know your arguement will be but they didn't! If you look back my old post stated the obvious VT should have put themselves into creditor protection. Did they nope but they sure wanted to after they were forced into receivership. However, even that is neither here nor there as shareholders were getting wiped out either way so I am not really sure what your arguement is?
To say VG could have likely made it work is ridiculous as even the fact that they said they were going to put themselves is CCAA tells you they knew they could not make it work! Think as shareholder equity as debt! So by declaring CCAA or receiver ship they get to wipe out 600 million in shareholder value so basically that is pretty much what they need to make it work.
That is why I think it will become a viable operation you essentially wiped out 600 million! So what do we have about 300 million in debt after you account for secured and unsecured debt. I suspect the 100 million bond will get spent one way or the other. So the buyer of the operation will need to put up 300 million to cover debt. Another 100 million more likely twice that as a reclamation bond and let us say 100-200 million to get the heap leach up and running again. So that is like 500-600 million! That is possible given it would cost about 600 million for a new mine with 2-3 million ounces and you are talking many more ounces than that. So maybe best case scenario they get out of this paying debt or maybe still a haircut from debt hard to say. However, I am not sure anyway they would have got out of this mess and had any recovery to shareholders the risk was just too high!
Additionally, you are reading the numbers simplistically rather than putting them into context. So if it would take them 150 million to get back to mining again that gets them back to mining not making money and paying debt. Further you say that would include the 100 million bond but who would pay for reclamation? Needless to say they would need to at minimum replace the bond amount and as I said abover that along with debt gets you to 600 million.....