Post by
lumpy13 on Mar 26, 2024 7:20pm
Important details dragging on the stock in the 2023 stmts
If you look at the details of IAU's convertible debt gold instruments and gold prepay and silver purchase obligations, there are various financial interests that are senior to shareholders but also have equity upside. In addition, every major property has numerous NSRs (altho in many cases the specific NSR is only for specified area, not the entire property).
Botom line, it's very hard to get a true sense of what IAUs cashflow will be, given all these different interests that get a cut of the revenues before we do. For those that do in depth financial analysis, this may be of significant concern and are a reason behnd IAU's declining stock price. Mgmt loves to talk about the properties and their great mining characteristics , but never really discusses how the company if financially structured and the implications of such structuring.
Comment by
diggin78 on Mar 27, 2024 9:57am
They may be garbage now but dumpster diving still occassionally yields some gems.