The problem you have is the last know interest payments where 1.7m a quarter and admin was about 1.7m a quarter. That means that 3.4m is spent minimum each quarter on company expenses. That means the 4m of profit earned from the plant will leave about 600k profit a quarter at 850 ounce rate.
At the 1000 rate you would be looking at 6m profit from plant and once taking out company costs of 3.4m that would leave you 2.6m a quarter of free cashflow.
This shows that a cap raise is definitely needed to help pay off debt and make it more managable, and stop the leakage of profit used to pay interest payments.As the debt is paid off interest payments reduce helping cash build up each quarter.
A cost cutting drive should be implemented now by management to reduce costs. If they don't want to do it, then other managers need to come in and do it for shareholders. Focus has been on the plant for a while. While it is profitable now, focus needs to switch to getting the most profit out of the operation now.
PGI Price at posting:
3.5¢ Sentiment: Hold Disclosure: Not Held
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