Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Even if the gold price went up Comstock cannot benefit. There are no longer a gold producer. They stated that they have around 3,000 ounces left on the pad to recover. Even if the gold price went up $200/oz that equates to $0.003 per Comstock share!!!!!!! waiting to see the rush to load up on them cheap shares!! Unfortunately even with the Feds help Christmas isn't going to come early people!! Please get some reality perspective before making unreasonable, irrational claims of amazing wind-falls when in fact there are non-existent.
Correct. Therefore any shares that AT receive are completely worthless (zero) to them unless the SP was over 56c as AT would NEVER be able to sell them. Commercial logic would prevail in AT not agreeing to a "Settlement" event at this time and until and unless the SP went over 56c. You see the 56c protective mechanism currently works against this arrangement working - at least at this time.
For a start:
Cl 9 AMT hereby agrees not to sell the Exchange Shares on or prior to the date that is six months and one day from the applicable Settlement Date. AMT hereby agrees not to sell the Exchange Shares at a per share price of less than $0.56.
No 20k was the plan.
ABSOLUTELY!!!!!!
You have hit the nail on the head. Then why did they? All that's been achieved is to have wasted $50 million of shareholder funds. There has been no benefit from starting Ops then stopping 3-years later.
You appear to have missed the point. The shares are unlikely to ever be issued because of the 56c price floor. The deal is being "sold" to shareholders (by implication) on the basis that the 56c provision provides underlying price support (you even state that it's a good deal because it represents a 51% premium). This is not the case. The price provision actually ensures that no credit will be issued and no shares issued under this share for services agreement unless the SP is above 56c.
It appears that one of my previous posts has been deleted so to put my last into context I repeat now what I previously stated that over the past 3-years since operations began the company has consumed $50 million, having poured 60,000 ounces of gold at an average gold price realized of $1,300 per ounce. To have merely broken even, the gold price would have needed to have averaged $2,100 per ounce over this period. The Ops never had any chance of being "economic".
The $50 million cash loss does not include pre-production costs (operating or capital). This is the cash used SINCE operations started.
"When the pit becomes economic Again"!!! It has never been economic. Get real.
I have looked at the American Tunneling deal recently announced (the actual agreement has been filed on SEDAR). Let's be clear, this does not represent a $5 million credit yet (shares still have yet to be issued). Comstock Shares are issued and a credit established from time to time (when Comstock need work done). The number of shares to be issued (representing the amount of credit) requires the price of the shares to be agreed by both parties at that time. The 56c that everyone is referring to, is part of some protective measures for Comstock that prohibit AT from selling those shares at less than 56c, which, in any event cannot be sold for at least 6-months. The protective measures however ensure that this "share for services" deal sits on the shelf doing nothing unless the sp goes above 56c and then only if AT believe the shares will stay above 56c. Unfortunately the protection built into the arrangement also acts as a barrier for it being consummated.
Getting close to the 52-week low again. All too often!
There is no drilling happening at the moment so you will waiting a long while for new drilling results.
If it's this years cash that you are focusing on then you need to include debt repayments of around $6 million plus around $1 million payable this year (and every year) to Mr Winfield re his new royalty arrangement, payables if around $4 million, exploration costs etc. Even with lower corporate overheads ($4 million per year according to the last quarterly) how can cash flow be looking good when revenue is likely to be around $4-5 million only? Doesn't look good at all. Clearly there will have to be yet another dilutive raising very soon to stay alive.
They will not "make" the numbers you suggest. Your numbers are just the "revenue" from which costs need to be deducted - not only the direct cost relating to the recovery of the metal but also corporate costs, depreciation etc!!! A company "makes" a profit. LODE "incurs" losses and that's going to be no different this year.
Cork. Have you read anything recently about this one? You say that "even if they duplicate last years production...." That's not going to happen as they stopped mining last year and have stated that they do not expect any mining this year. They are merely recovering the last ounces remaining on the leach pads.
Where do you get $32,000 per acre!!!New York commands $40,000 per acre (Apples and oranges). No way $32,000 - even with the development of the industrial park. The average land value in Nevada is $2,116 per acre. Suggest you do some basic research.
You don't seem to realize that 2 million ounces of the 3 million ounces is Lucerne and that's recently stopped mining - why? Because it doesn't make money!!! The ounces you refer to aren't Reserves. Ounces of gold in the ground are only worth something if you can mine and treat them PROFITABLY. They have mined and treated less than 100,000 ounces over 4-years and lost a lot of money doing so. Your maths are just ridiculous.
If they are only exploring how can the market justify a value of $75 million - not taking into account their debts and payables of $15 million? Are they putting a $90 million value on exploration and property? Seems high. Your thoughts Dumster?
So what happened to the "earnings" you were harping on about? As I see it - another quarter of significant (and increased) losses.
It appears Underground production now won't happen until 2017. Long wait and more cash required - soon!!
With no mining, mining costs would have seen a significant reduction!! Wow. Great job. However minimal gold sales = low revenue = losses (not earning).
I would suggest you take your own advice. They are not mining underground. They developed an underground drift from which they have drilled the PQ zone. It will be months before they mine ore from underground on a sustainable basis. This came from the last quarterly Conf call.
But they've stopped mining. Only remnant gold recovery from what's remaining on the heap leach pad. How are they going to able to post a profit???
Does any one understand Mexus latest announcement? They continue to be extremely limited with any commercial facts (such as the basic terms of the "partnership". How much of the Santa Elena project will Ecomine receive for their time etc?
10 million shares being issued at 35cps to raise $3.2 million after costs.
What's the TW?
Anyone seen the financials? Am I looking in the wrong place?
How can you say that UG will make money??? You have no idea about the grade, mining costs, met recoveries, capital development requirements etc. suggest you don't make predictions using your crystal balls and wait for the facts.
Only in profit because of the write back of an old +$3 million provision - "one-off". Shouldn't be deemed "profitable" until it can be achieved without the benefit of extraordinary items.
Wasn't able to get on the call - other commitments. What was said about the 40,000 ounce per year target?
Production still at 20,000 ounces per year. What happened to the 40,000 run rate advised during last quarters conference call. Cash at $4.2 million at March 31st achieved by drawing down $4.4 million of new debt just prior to the end of the quarter. Otherwise they would have been overdrawn by $200,000. That means the company was $5.5 million net cash flow negative for the quarter. At this rate cash will be gone by the end of this quarter. New highly dilutive share issue is around the corner.