I stand corrected on their wording, I went off what the balance sheet called the amount.
I can't tell you reason for this 'voluntary pre-payment' and neither of us can ask the company, because if you call or email them nobody will get back to you.
Besides, I've had to learn the hard way not to take much notice of the commentary in the quarterlies. It's a very expensive exercise to take notice of what management say.
The commentary consistently and now predictably hasn't coincided with the numbers.
If you're going to look at what they say in the paragraph above, look at the whole paragraph.
They're still calling it an 'expansion plan' - they say we've had strong interest in financing the expansion plan! What expansion plan?? They can't even get to 80,000 oz and it's costing more than $2000/oz and they're still talking expansion?
Where's the 'strong' interest? According to the commentary Pac Road are coming to the rescue and buying half the farm. Commentary: Everything is fine with just some finishing touches left to be put on the deal! That was announced on 1 November!
So they've had 'strong' interest have they? They've had 1 potential taker who was meant to buy 40% of the farm, but who is taking nearly 7 weeks to complete the deal, and sending in another broker to underwrite the CR...
They're still talking 'robust' economics while they've burnt through $3.7M cash each month and will be insolvent in less than a fortnight unless the funding goes ahead.
It could be the case that the $2.8M voluntary prepayment is the one sprinkle of fact in that big bowl of steaming spin.
BLK Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
