Your post is spot on. Have a look at how Ormonde shareholders fired with Oaktree.
If EQR did not take Salaro off there hands and it went on care and maintenance. They would have had to burn through $80 - $100 million by now.
Although they now should hit sum reasonable numbers for the short term, my reading of the mine plan as the grade falls away, says it will not make anywhere enough PROFIT to pay down the 40+ million in dept. Which now needs to be refinanced with in 6 months.
With them only banking less than $9 million from the $25 million Oaktree placement and have properly had to spent double that on capital expenses and operational losses at Solaro. So as a consequence they have not had the cash to fund the plant expansion and had to wind back the stripping at MC which was needed to make it PROFITABLE.
EQR Price at posting:
4.0¢ Sentiment: Sell Disclosure: Not Held
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