This is a fully operating mine with an NPV well over $700M if not $1bn depending on your assumptions. And after a year, it's been de-bottlenecked with good effect and operating at about nameplate. Ponds and tanks appear to have been fully remediated.
We were waiting on a LOM plan and there will presumably be some $ to resume mining. Additionally, there's an upcoming bullet payment that shareholders would need to front. But after that it was looking really good. $1/lb margin is $70M USD profit a year. That debt would have been crushed in no time.
I don't know what's the inside story here. Banks must have been leaning on them pretty hard..... However, we weren't even given the opportunity to participate in a CR. I don't know how much they needed - $60-80M? Sure, that's dilutionary but with todays copper prices it may not have had an impact. I'm surprised they couldn't find a new substantial holder to participate in the raise.
Would be interested to know what the Todd's think of it.
Man, what a disappointing outcome. I'll be voting against it.
TGS Price at posting:
4.9¢ Sentiment: None Disclosure: Held
