Gold Mountain Mining Corp T.GMTN

Confucius Says...

[Theckman1]

Real knowledge is to the know the extent of one's ignorance

So, based upon what we know so far, and how the market is reacting, what are the risks here?  Risks are the following:

-  Cash burn continues with further OS dilution in to next year as more work is needed to understand the ore body.  This dilution would be crippling at current prices (alternate view:  Cash generated from recent in-pit spatial data awareness ramps up monthly revenue past $3-4M eliminating cash burn and any need for additional share dilution)

-  Unsolicited takeover is received at these low prices that is not indicative of the overall value of this project, thus eliminating the possibility for the 5-10x SP possible gain (alternate view:  Legacy investors leave and give up, new investors come in realizing the multiples in SP gain over the next few years that can take place.  If an unsolicited offer is received I doubt that the major holders would give it credence unless it was a very sweet offer)

-  Gold price continues to fall with interest rate increases, thereby reducing value of GMTN (alternate view:  Gold price stays steady or rises with the fall of stable currencies whilst interest rates can longer be sustained without additional QE)

-  Stock market crashes and GMTN goes to cash level with the SP, or below (alternate view if a crash were to happen:  GMTN initially crashes and then goes up 600-1000% with a massive pop in Gold due to currency collapses)

I'm sure there are plenty of other risks but my thought process was to give alternate views based upon the micro and macro picture of what is known.  I don't think the Fed (at this time) will allow a crash to happen in the overall market.  In fact, I think we still have one more big blow off in the market at some point over the next 1-2 years.  There will be extreme volatility along the way.  Also, I believe that GMTN has a good hold on the ore body.  They are moving phase IV drilling to 2023 to ramp up production fully focusing on revenue generation, and that they will be successful in doing so.  If they didn't have confidence in the ore body then they would have gone in to a full shut down mode on most activities to eliminate cash burn.  This did not happen.

All the best,

[Windtalker]

Theck, your optimism is worthy of a saint. I sincerely hope things can find a way to work out here. As it stands, there are many challenges. 

[Theckman1]

Thanks, Windtalker.  I'm trying to share my view point understanding the challenges involved, and seeing the broader macro picture.  The SP is getting hit as I think a lot of the last holdovers are 'heading for the hills' based upon their frustration and expectations.  Not to mock the pain of others with the SP, but the deeper it retraces (especially in the next few days

[Windtalker]

Theck, I'm looking through today's disclosure and I'm not clear on how they are going to get to profitability. High probability of more $$$ being needed and that's assuming they are on a sound turnaround trajectory. Time for CEO Smith to get back on the promotional stump and bring much needed clarity to the sotuation at hand. That AISC speaks volumes. Still looking for a glimmer of

[Theckman1]

Hey, Windtalker I just got home from the coffee shop.  I hope you're doing well. It obviously is a confusing time and I believe there will be more updates going forward on progress and to clear some things up.  I still see a path to profitability, really a path to break even as they continue to invest in the value of the business.  If they don't need to pay the reclamation

[Windtalker]

Much appreciated Theck. In their disclosure they spoke to financing the next 12 months of operations with improved efficiency along with financings. I know that little snippet of information has many retail investors deeply concerned. Raising sufficient capital at these levels will be highly dilutive. The price of the shares could be much lower when they actually do the financing. If you can sneak

[Theckman1]

Yep, Windtalker...dilution is on my mind ;).  Dilution at these levels would be crippling as they would have to wildly dilute at these levels if serious money is needed.  IMO, I believe that mgmt is much smarter than that and will spend accordingly, and bring the money in needed to finance the operations.   Updates on monthly progression of mined ore and revenues, the Q4

[Inspired423]

We will be crippled by further dilution as demonstrated by past financings, and statements of additional financings required to support continued operations in their news release.   Winter is coming and mining efficiencies will faulter at a cost of higher opex. The Q4 resource update will be pushed of to Q1 due to the backlog in core processing and processing times backed up at BCSC

[Windtalker]

123, read the following from your post on ceo.ca.    @inspired423 The gig is up. Check out the payments due in October not the ones due next year. Are you suggesting it's 'lights out' for the company in October?   @inspired423 The gig is up. Check out the payments due in October not the ones due next year.

[Inspired423]

They opened up the mine face - if they aren't seeing $3-4 million a month in revenue now - yes it will be obvious another financing will be needed - at which point retail will abandon this stock.  Kevin Smith should be thrown in jail for misleading and stealing investors money in February communicating the $3m/m revenue stream which was obviously a lie.  He has ZERO integrity. The

[Windtalker]

All the best to you as well Theck. 

[Inspired423]

They are pushing out activities as they are running out of cash. They have $5m+ in cash and a $2.7payment in Oct .  This statement is incorrect:  "They are moving phase IV drilling to 2023 to ramp up production fully focusing on revenue generation, and that they will be successful in doing so."

[Acre10]

Interesting. What is the $2.7M payment in October for?  I don't want them burning cash on exploration either and would rather have the company focus on getting ore mining right.

[Theckman1]

Acre10, the $2.7M is a reclamation security fee, and there are yearly installments culminating in 2024 with a larger installment.  Inspired is correct on this.   Inspired, I actually appreciate your viewpoints as you keep me grounded.  I hope that you do not have the same approach overall in life, but I know you've been burned here with a lot of folks.  I wish you all

[Acre10]

I don't think that equates to dollars out. Typically mining companies don’t front the full amount. They work with insurance companies to lessen the out of pocket costs.

[Inspired423]

I appreciate the feedback Theck. Based on Kevin's interviews and videos he really mislead me and other investors on the true status of the mine.  I was a full on supporter in February. He lied to everyone - my portfolio has taken a significant hit.   The fact he has stopped all videos and communications shows the type of individual he truly is. The guy is a multimillionaire and is