Sunday Special -
End of quarter "$5.2 million liquidity. $1.3 mill available cash & $3.9 mill inventories".
"Liquid assets include cash, Dore & GIC/gold in circuit". July Qtr P10
Infer @ Total liquidity/$5.2 mill less available cash/ $1.3 = $3.9 mill equivalent dore & GIC. SsStockpiles quoted as 167,000t at 1.67 g(1.67 % sure) quoted as 8,945 oz/ two months production or 8,945 * 1,200(whatever) = @$10.7 mill rev.
Arriving at the conclusion that liquidity/liquid assets excludes stockpiles or stockpile is not classed as GIC? Feel free to comment.
"$7.8 mill (AUD)net cash flow from operations for the quarter", shedding light on the possibility of paying the $6million big 1's ($8mill USD) at quarter end coupled comparing operations of
1,021,705 ton mined for 170,945t ore = @ 6:1 strip ratio if I'm seeing it straight = the least amount of mining/ore extraction & processing for the past 4 quarters yet is up there with a fairly reasonable production effort of @ 19,500 oz (caviat the realization of the smarts pits narrowing/reducing production considered moving forward.)
Possibly the last of the negatively positioned hedges this quarter 9,000 at @1,183 teetering to turn positive for once and dead ahead with the remaining outstanding hedges Dec 13,000 @1,233 & Mar etc which one can only be thankf*** for but in saying that, it is this quarter in which resources and efforts will be required/ utilised to their full potential in order to stay afloat given the minimal margin available as per current gold price & AISC.
Let's see - first 9,000 zero positive, hedged at 1183.
20,000-25,000 oz production basis, realistic.
(previous quarter 5.2 mill = 5 mill liquidity obligation with Investec - true or false?)
16,000 oz maxXx sale @ 1,250 say average with 750 AISC leaves 500 margin.
500 * 16,000 = $8 million AUD spot-onski.
Tweak that one this that n the other way but the back is against the wall this quarter and Investec know it.
June quarter production being reduced due to equipment breakdowns being mentioned with no brief clarification or specifics provided nor rectification assurance leaving the door open to speculation or assumption that this issue may be ongoing in the current quarter, taking into consideration the increase in water has on the running of the mill/plant & workers(higher ltifr). Like an inverse relationship really - add water subtract production vice versa. This quarter maybe the rain to ease up some?
I am unable to envisage how it be possible to produce enough gold to enable the $6 mill USD/$8 mill AUD payment this quarter whilst maintaining the current liquidity requirement at $5 mill.
Taking into consideration grade reduction pending although specifically this quarter, the allmighty may allow for one more all important (preferably 2 quarters) high grade average to get us accross the line?¿?
These circumstances aren't absolutely essential for Troy to progress as a going concern but they are grounds for a legal major influence in how the game is played from here on re-Investec.
Another card in the pocket is to rely on trade creditors to reduce the AISC, if that's possible in the BS world where almost anything seems possible, (business structure) then that may help.
Another expendible/non-expendable resource may available which I am unable to foresee at this moment but surely they do exist. (Crude example -Consult another loanshark etc for a short term loan or at least broker for a suite of available competitive funding options against Investec's monopoly bid/at all costs)
There are other options surely...
Year on year the BOD have been syphoning exorbinant wages from a non profiting enterprise, fair enough one may suggest given the time they have put into the enterprise overall and two of the 3 stooges have been there the whole time during the past 5 years of non profit generation (baring Peter) regardless they likely have the financial capacity to foot the bill temporarily but given the nature of the existing exorbinance(base salaries) would likely extract/exorbinate any potential exorbinable exorbinance anyway to benefit themselves - the $number$ are there, yes BS walks and the suggestion is fair and reasonable as I see it. How much have shareholders put in? Whom is running this show, (at face value anyway)?
My point is -
do what is required to avoid Investec influence,
do not restructure,
put them over the options lapsing barrel,
return the favours of business ethics,
surely the board can play this game and not be played all over the board as per usual.
Fingers crossed - go Troy management
Any realistic assessments of how the Board gets accross the line this quarter? Let's see...
Go the Gold Price...
TRY Price at posting:
13.0¢ Sentiment: None Disclosure: Held
