"I have sent ogx an email and awaiting their response re the JV"
Good luck. If Anglo ever had binding rights to 70% of the Faina goldfield and aren't progressing the exploration after having all that time to do due diligence it puts the potential of the ground into real perspective.
Unfortunately I think this company is going to put a positive spin either way and your question won't be answered. If Anglo are out they'll couch it like some sort of win but there is no way on earth Anglo's lawyers wouldn't have protected their rights under the MOU. These guys use big international law firms or highly sophisticated in house lawyers. If Anglo are still in, , a lot of you will end up with pie on your faces but this would make me happy. Better to have them do the exploration than try and do it with the change out of the $8.5 million after Cascavel sucks up another $5 million. $7 million of Anglo spend de-risks this company as opposed to the continuing dilution we are seeing to fund this work.
I was happy at the prospect of the mine making money and Anglo wearing the risk of the exploration. NST have been making $120 million of free cash flow out of 6 separate underground operations (7 mines if you include Paulsen's which has recently closed). That's only $20 million free cash per year per mine. $46.2 million would suck up all the free cash out of two of their mines for a year.
The people accusing me of down ramping should really question what I've said and put counter arguments up rather than try on the amateur psychology.
I've only quoted what the company is saying and has said in the past. If that's disturbing you better do some more research. Esh
OGX Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
