Claude Res Inc CLGRF

How Much Money Does CRJ Really Need?

[December3]

Well it looks like CRJ will be turning over dollars for the rest of the year - not banking anything.  I suspect that is going to make it hard to fund a mill expansion at Seabee.

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Remember from the CC, Neil said this:

I think that probably cost you if you started up an operation like Seabee from scratch, it would probably cost you about $4,000 as capital for every ounce of annual production. I believe Seabee can be expanded for a fraction of that number because of the existing infrastructure.

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So he wants to expand production by 50,000 opy.... so at "full price" that would be a cash need of $200M!  But Neil said a fraction of that?  Huh?  Half is a fraction...and that would mean CRJ needs $100M in order to expand Seabee!  With a market Cap of $100M how is  CRJ going to raise $100M to build out Seabee?

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Even with the fraction being 1/4 - CRJ would still need to raise $50MM.  They don't even have a down payment on any loan.  Only loan they'll get is a non-recourse loan - one that requires hedging!

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This looks as bad a GBG's situation.

[prem124]

Assuming the price of gold is going to be static you might be right. I invest in gold equties because I am bullish on gold for the next few years and I think this autumn can get interesting. On the side note I agree that CRJ management has dissapointed this year and there are other perhaps more attractive optons amongs equities now. I sit on the fence and price of 57-58 cents seems very

[boreps]

For years Neil claimed that the cash flow from Seebee will support Madsen - "a fully permitted high grade mine". Now we see that Seebee have hard time to support itself with 4% operating margin and over 20 mln.debt.. Thanks to R.Buchan this company got some exposure but he opt himself out and I do not see anything that could turn it around. Or maybe if the price of gold quadruple....