OTCQX:RPMGD - Post Discussion
Post by
ts9222 on Jul 23, 2017 6:59am
Cash Position
I haven't been following this board closely. Just saw that Chutzpah already gave a clear indication of their cash position:
"Cash more like 25M after bought deal proceeds will be received.... from prospectus just filled today:
As at May 31, 2017, the Company had cash and cash equivalents of $7,624,522 (not including the proceeds of sale of the Rochester Royalty of $7,230,354 received June 1, 2017) compared to $9,810,168 as at March 31, 2017. The Company had an estimated working capital deficiency of $8,864,903 at May 31, 2017 (March 31, 2017 – working capital deficiency of $4,520,512). Included in current assets is $7,230,354 in accounts receivable related to the sale of the Rochester Royalty. The current liabilities of the Company include approximately $7,761,778 of contingent consideration which consists of $6,706,480 (March 31, 2017 - $6,461,204) for the contingent cash consideration and $1,055,298 (March 31, 2017 - $1,696,500) for the contingent warrants, all in connection with the Company’s acquisition of the Florida Canyon Gold Mine. The Company has several settlement options for the cash contingent consideration as described in the AIF"
On June 1 they had CAD$25m after the addition of the royalty and bought deal.
They used only $2.2m in 2 months, going from
$9,8m to $7.6m.
If they don't use more than $5m in the 1 month of June, they would have over $20m cash in the Q2 report. That is a lot of cash.
The market is over reacting to only 1 month of downtime. When the 2 circuits are back online, truck availability return to normal, and they start mining the second pit, it is not much of a stretch to reach the key 3600 oz break even number from 2894 oz.
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