Post by
Smeeeee on Dec 29, 2021 4:20pm
Thoughts
...if I were Drover, I would do my best NOT to raise capital at all... The mine is producing and therefore Revenues are available... How much? Don't know. What we do know is the mthly operating is about $1.5Million/mth. Debt repayments between now and March are $4.0Million.
There is $9.0million in the bank. SO... operating expense is covered for 6mths and with available revenues even at 1/2 production cash should be available for the $4.0million for debt. The mine will not be cash flow positive until potentially June now but the mine could get by on revenues generated. Also $1.5 operating expense per mth may be overstated with all of the layoffs due to production reduction.
Drover has dozens of eggs on his face right now and firing someone doesn't wipe many of those away. Dilution at this point would be a great big black eye!!!
Comment by
twpt on Dec 29, 2021 10:47pm
Better duck cause that left hook is coming, Maybe as low as .30
Comment by
Smeeeee on Dec 29, 2021 11:20pm
TWPT....You are like a like an illustrated children's book....way too easy to read!! Dont know who you manage this board for but you should be replaced... you suck at your job. The share price has already been at 30cents and may go there again...buy some!! Dilution will be the last card played.
Comment by
Lifexprt on Dec 30, 2021 12:44pm
Good point but he needs a cushion for a margin of error. I would try the following. Renegotiate existing loan. Prepayment for future deliveries. Cutting down costs. Extend account payables. Anyways tax loss selling pressure has abated now we need actual production figures to be released mid January
Comment by
twpt on Dec 30, 2021 1:46pm
Any renegotiation of loan would entail them having to renegotiate total loan facility at a higher rate. Lenders will not give up more available credit without a much higher premium on total loan facility. They will not go there, so guess what, the only thing to do now is go to the market with your tail between your legs and take what someone is willing to offer.
Comment by
Smeeeee on Dec 30, 2021 1:48pm
What a tool ....longer commitment....same rate. There is tons of money out there... bird in hand!!