The upside though is financial.
'The Company's balance sheet remains strong with $35.6m in cash as of the end of August and an additional $25m in liquidity from the Orion facility (subject to conditions precedent), which can be drawn until 31 December. Combined with revenue from current stockpiles and ongoing production, the Company expects to have sufficient liquidity to ramp up to commercial production and cover debt repayments. The first quarterly debt repayment to Orion of approximately $18m is scheduled for 31 December 2024.'
And increased production.
IMO
H |
Surprised no comment.
The downside was the ruling leading to the need to seek a different site for processing.
'The new Veovaca TSF area is located approximately 2km from the Vares Processing Plant. It is within the existing concession boundary, does not involve the use of state forestry lands and the Company owns the surface rights. The required water and environmental permits are in progress, the design is in its final stages and the construction approval is expected in October. Early surface works and procurement are ongoing, and permitted construction on road access has commenced.
' |
Sitting duck for a takeover now Cronin has gone. One of only a few quoted silver plays. |
Silver seems the rose amongst the thorns this morning.
However gold has been superb let's face it. |
Much more turnover in Australia on ASX |
Sitting duck for a takeover now Cronin has gone. One of only a few quoted silver plays. |
Beautiful 'W' on the charts. |
Absolutely!
Tangible in a very uncertain geopolitical environment. |
I know nothing about gold's inability to "self heal", hazl.
What I do know, however, is that it's been damn good for the health of my portfolio over the past 25 years!
And still delivering. |
Thanks the Apiarist.
Also silver is very much a theme currently.
Did you see that report about the discovery, by the Chinese, I believe, that silver can self heal?
Gold cannot it seems. |
Just a couple of issues, hazl - the tailings problem and the CEO's resignation.
Apart from which, everything appears to be proceeding according to plan.
At a back of the envelope level the economics look compelling.
2025 silver output should be 800,000 x 187 x 0.035 = 5.236 million ounces.
The silver equivalent AISC according to the DFS is $7.3/oz. Being conservative let's say $10.
Therefore today's margin = $18.8/ounce of Ag.
Producing a pretax profit = $98 million
Less 10% Bosnian corporation tax = $88 million
First debt repayment is not due until Dec. 2024 by which time the company should comfortably be in a position to service Orion's loan and be debt free within 18 months.
Barring some unforeseen mishap, at 150 compared to analyst targets of circa 250 there wouldn't appear to be much downside but plenty of upside.
We'll have a clearer picture come the New Year! |
I'm feeling very much more cheered by this now. |
Yup, good luck hazl. |
An Operations Update will be announced on 23 September 2024, followed by a webinar presentation by Laura Tyler, Interim CEO and Michael Horner, Interim CFO. Further details of the webinar will be provided in due course.
$58.8m in cash at the end of the Period places the Company in a strong financial position with sufficient contingency ahead of reaching sustainable production. |
Fair enough swanvesta they do seem to play many tricks of the trade (legal I'm sure) and information is power.
However they are quick to change their stance, as well, as we have witnessed.
As long as this comes good in the end, that's the main thing for me anyway.
And I note a few signs of sector interest and recovery.
CEY takeover talk yesterday.
GGP a deal done today.
Green shoots perhaps.
IMO |
Is there signs the worm has turned?
Will that pattern turn into a 'W'?
Questions questions. |
Count, read my post 164 and subsequent. No point boring everyone by repeating myself. Cheers. |
Swanvesta, what is your point? |
hazl,
I don't want to drag this out (or repeat myself too much) but as I said before Goldman ARE reporting securities lending:
My last on the subject, unless/until someone with REAL KNOWLEDGE engages. |
I can see this going to 120p |
Hmmm suggests a low of 230 for next year, cannot see what the remainder are.
IMO |
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