Ann: Quarterly Activities and Cash Flow Report, page-16

With the current shareprice strength, the con note holders could sell at $0.004, which would result in a conversion of $0.0032 and the remaining $1.6m would be 500m shares. For a total of 2660m shares. And the lowest strike price on the options is $0.012, nearly a tripling of the current price range, with many options much higher. If we are counting those, then we're looking at a big multi-bagger on current prices and that's good by me. There may still be a lot of shares around to sell, but this is a small company, it doesn't take much money from buyers to counter it, and that's what we've been seeing lately, especially with our new substantial holder.

They aren't rolling over production to make the figures look better, it's to trigger the next part of the SilverStream deal earlier. With the cash from that they'll be able to pay off the rest of the APG debt entirely (though there's no hurry to do that, they're ahead of schedule). The company is nicely on track to being debt free and plenty cashed up for any cost-reduction plans.

It's worth noting that this new San Santiago plant acquisition isn't exactly required, the companies plans were quite sound before that and would have resulted in a nice, cheap gold producer. If the acquisition does go ahead it'll speed up the growth of the company and be fantastic, but it's hardly make or break. The SilverStream CEO resigning is quite strange, but it's that $5m streaming deal that we really needed and that's already in place, legally binding and nearly half complete. Pulling out of that now would be a nightmare for SilverStream.


I mean, at this point the debt problems are being addressed, cash is being addressed, dilution is mostly complete. The main risk now is the most basic, can they sell the gold for more than it costs to produce. We'll know this over the coming months as gold production starts up. If they can't get cash-flow positive then this company has had it, but management have been ticking all the right boxes so far, and I've got no reason to doubt them yet. Plus they report really well, I love it when companies do that.