Good Morning:
The company is on the record that there will be no more dilution.
The company is on the record that they already have $80MM dollar loan at 6% arranged that will cover LP.
The company is on the record that they can cover all future cash needs for Molejon from current operations with gold at $1,250.00/oz.
The Casey Research article I posted early this morning addresses deflation scenario. I re-post that section again below.
Those who I have talked to who are actually going to London from here are very positive on future earnings and cash. Look at the production volumes on Page#27 of the London Presentation and factor in the price of gold. We will be in a position to lend money in twelve months! Just my not so humble opinion.
"Gold stocks and the Greater Depression
Those of you in the deflation camp may dismiss all this because you're convinced The Great Deflation is ahead. Fair enough. But you'd be wrong to assume gold stocks can't do well in that environment.
Take a look at the returns of the two largest producers in the U.S. and Canada, respectively, during the Great Depression.
Returns of Producers During the Great Depression
Company 1929 Price 1933 Price Total Gain
Homestake Mining $65 $373 474%
Dome Mines $6 $39.50 558%
During a period of soup lines, crashing stock markets, and a fixed gold price, large gold producers handed investors five and six times their money in four years.
If deflation "wins," we still think gold equity investors can, too."
