If there is no debt repayment this quarter as @winternight says, and only 5K oz sold into the hedge for the quarter (DR said 73K oz hedged at end of this quarter and March quarterly had 78K), there is the Q of where is the cash going. DR was at pains to say the big focus is repaying debt and hedge but it seems like this hasnt happened in the current quarter.
If there is say 12-15M operating cashflow this quarter but minimal cash increase, I would have liked a better explaination.
2 immediate answers spring to mind - 1. The have paid off/down other short term liabilities like trade creditors which may have blown out a bit prior to the CR and 2. Growth Capital with things like getting Bulletin ready.
Speculation at this point agreed. I hope there is a solid answer.
On a positive note, the whole Nullagine restart looks very promising. Was interesting when discussing historical Klondkye grade/orebody problems DR said "thats why I feel comfortable with the other 2" referring to Beaton Ck and Bartons which will be first sources of ore for the restart. I take this to mean that since there is a lot of historical mining plus the recent resource confirmation wok, they have strong confidence in the model of where they will mine and what they will get out of it. And rough capex for mill upgrade only 2-3M (although no doubt other restart costs besides the mill). I know we need to wait for FS for details but early indications are this is a relatively low risk, low cost restart. If this goes to plan debt will be smashed in no time. DR mentioned 30-40K oz p.a. from Nullagine at 1000-1200 margin which is 30-48M additonal cash p.a.
CAI Price at posting:
10.3¢ Sentiment: Buy Disclosure: Held
(20min delay)