No doubt GCY will be in the hole by the time everyone is paid out. The question is by how much? I am presuming that figure will be less than 10 million. What-ever the figure ultimately is, one would reasonably assume it shouldn't be enough to sink the business. There is just too much residual value in their current assets.
Fair call on the stockpiles. I'm gathering the stockpiled ore would be under 1gt. Maybe it might be best to salvage the value of the stockpiles when/if the gold price improves.
The tailings lift from memory needed to be completed by early in the June quarter. Any future toll treating agreements should comfortably cover any costs incurred finishing the tailings lift.
Perhaps NRW would be open to converting the LOM contract/royalty debt into a royalty payment based on future production of GMZ processed ore?
From my understanding the NRW contract is not all encompassing of the wider Dalgaranga region, just GMZ. These will be some of the issues currently being negotiated with NRW.
Either way I think anyone who thinks they are picking GCY up for 40 million is kidding themselves although I'm sure someone will lobing in a low-ball offer.
WGX Price at posting:
85.8¢ Sentiment: Buy Disclosure: Held
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