Thursday, May 19, 2016 12:44:41 PM
AUE.TO - daredguy
Thanks for the reminder. Have an order in for some gambling shares at $.06 after looking quickly. Could double quickly simply on announcement that production has recommenced, then I'll revisit. $.05-$.06 area is long term bottom.
Mine was financed primarily with project finance (debt) but they have some nice open pit grades (3.4 g/t) if they get things running smoothly. Lenders currently 'own' the company until they can prove they can get things running smoothly. Principal repayments due in the next year are 19.1M which doesn't seem so feasible right now thought the first senior facility payment is discussed as only $3.1M which is doable if they can push out repayment. If you take out the debt in current liabilities working capital is zero - I've seen worse. They are also mining and building a stockpile so there is potential for a big turn-around if mine starts up and they run at capacity for several months. Commercial production was declared on Mar 31.
Gambling shares but we'll see what they announce on mine re-start, debt deferally and updated LOM plans. Market is smelling a PP here but they should have enough flexibility to negotiate deferral.
Its always interesting buying a CAD $35M MC company that has been financed with USD $178M of share capital over the years. Ouch. Doesn't matter for us if we're in at bottom.
Thanks for the reminder. Have an order in for some gambling shares at $.06 after looking quickly. Could double quickly simply on announcement that production has recommenced, then I'll revisit. $.05-$.06 area is long term bottom.
Mine was financed primarily with project finance (debt) but they have some nice open pit grades (3.4 g/t) if they get things running smoothly. Lenders currently 'own' the company until they can prove they can get things running smoothly. Principal repayments due in the next year are 19.1M which doesn't seem so feasible right now thought the first senior facility payment is discussed as only $3.1M which is doable if they can push out repayment. If you take out the debt in current liabilities working capital is zero - I've seen worse. They are also mining and building a stockpile so there is potential for a big turn-around if mine starts up and they run at capacity for several months. Commercial production was declared on Mar 31.
Gambling shares but we'll see what they announce on mine re-start, debt deferally and updated LOM plans. Market is smelling a PP here but they should have enough flexibility to negotiate deferral.
Its always interesting buying a CAD $35M MC company that has been financed with USD $178M of share capital over the years. Ouch. Doesn't matter for us if we're in at bottom.
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