Post by
Jack79 on Jun 19, 2021 12:36am
Everything STGO said is a big LIE...
Mismanagement both side, operations & financials. Repeating few topics like broken disk. Drilling UK, doubled ATO rss, good start only 14 months with $20 mio cash, listing in MSE will up SP to $4, new "kraken" crusher will crush everything, positive cash everyday....& so on.
Everything they said during webinar rejected by facts. Why? In last few webinars STGO never noticed about UK drilling. Why? Here is why, my view:
1. UK drilling might show unexpected low results. ERD did BFS only on "Bayan khundii" exploration inset, which is located far away from "Dark horse" inset. Dark horse drilling resulted low gold grade, average 0.5 gpt, lowest is 0.4 gpt. UK license is far away from Bayan khundii & almost neighbor to Dark horse. So, STGO drilling might have same results as Dark horse, between 0.4-1.7 gpt...
2. Built mine only 14 months with $20 mio. A lie again. Look at debts. When you calculate total cost of investment, then must add debts to IPO. It must be around $50 mio cost of investment.
3. Listing in MSE will blow up SP. CEO & CFO already rejected that by themselves. MSE for releasing restricted stock units (RSU) holds by employees, not for investment.
4. Positive cash everyday & FCF-free cash flow generated from operations. - $5 mio cash is true net FCF from last annual financial report. They not even looking at Financials, then how MD&A signed off? Strange, phenomenon. Drunk, on drugs, or intentionally, with purpose doing that?
5. ATO rss doubled, but gold under massive barren rock. Economically ineffective. That's why STGO doing "selective mining" even that action prohibited by Mongolian minerals law. .... https://mrpam.gov.mn/public/pages/16/Minerals%20Law.pdf ...... Article 35. General Obligations of a License Holder, clause 35.5 The mining license holder shall exhaust all the mineral reserves. It is prohibited to mine selecting the high-grade areas.
6. New crusher. Yes, will crush everything but what to crush? without clear mining schedule....If it's oversized, that will be low OEE - overall equipment effectiveness. Waste money on maintenance. ....IMO