How does the forward sale work? Can GCY request a portion of this cash now or is this just a hedge? The forward sale announcement is very vague.
The forward sale of 82,000 ounces is approximately $135M and is roughly 15% of their estimated total yield from Dalgaranga Gold Project. Would they have this amount stockpiled before the end of 2018 since I'm assuming this forward sale has a specified date at less than 1 year time?
Can someone confirm this for me?
Total capital cost is ~$86M,currently $35M has been spent on development since Q1 and another $20M planned for Q4. With $5M security from this hedge and $20M cash in the bank, $86-(35+20+5) = leaves $26M required for the development of this mine. Would GCY need another capital raising in order to afford the processing plant? Or is there some other tranche that they can draw down on?
Given that they build the mine and start producing on time. The forward sale should cover the remaining capital costs for the mine and the rest on further exploration for the Glenburgh mine. (still waiting of the first drill that was expected in Oct). Egerton is a long way away.
Additionally, the Company currently has no debt(this true?), 100% ownership of the mine, mining lease and the mine is already in construction. I would assume no export licence is needed since they're only planning to sell domestically.
So then why did the share price fall????
Are they any financiers or conditions that must be met for production?
Is it safe to say that the $55M placement is from one of the top 6 shareholders?
GCY Price at posting:
44.5¢ Sentiment: None Disclosure: Held
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