Let’s assume we have $30m (from loan/NE sell and or CR) and second plant ready to use and we started mining operations. To go on the smooth ride we may or may not need the $30m but we assume we do and smooth ride starts from March 2024 (production 10k-12k per month, higher production lower ASIC but we will take AISC $1200 profit 6-7m per month, first (march to June) qtr we just made 18-21m cash profit and then it continues. 24-25 year we will have balance 100m usd in our account.
All those drama about bonuses and others will disappear and people will be talking about our turn around story for long time. We will see LG start posting naked girls in HC again
it is easy to do refurbishment without loan or Cr as it is costing us 4.5m per qtr. once both plants are ready then we can increase our stock pile to generate more cash and then start mining operations which might delay till June qtr or September 24 qtr.
But looking at the Ann management is trying to start mining operations in October and target higher grade and run through them in plant 2 to increase production to generate more cash, risky moves but it will be paid off if they target 1.5g-2g per ton. How much extra capital requires and do we have the money? Do we have the support if we need additional cash? We know RSK maintaining 16m balance, is it enough? If our creditors wants to be in bed with us and say we don’t have to pay for 45-60days then it will give us sufficient time from mining to gold and pay them. Again it is risky move and management should analyse it before implementing it. If i were them then I would get the bank loans ready and also ask creditors for extra time next 6-9months (less risky and interest expense can be offset against interest earned). Fast track refub of plant 1 finish everything by December. Jan to December create history of exploration and mining.
I hope management is reading my post and start giving us some updates.
KCN Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
(20min delay)