I think the plan is to pay off 13m of the debt in 1st half of 2014. Then they have 17m of debt outstanding which they would be in a position to fully repay from 2nd half operations if things go to plan although the debt matures in September 2015.
So the way I see it, moy has 2 ways to play this:
To conserve cash this year by cutting exploration expenditure and oay debts of as quickly as possible; or to take a gamble and allocate some money to development.
Don't think they are in a position to decide until golden gate campaigning is finished. That will give them a better idea where their cash flows are at. If golden gate gate turns out to be a ripper, they can be a bit more aggressive with exploration in 2nd quarter this year.
MOY Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
