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CashedUpBogun

8,362 Posts.

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15/11/17

16:09

Post #: 28820804
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Originally posted by rumbai12 ↑

Tragic what has happened here - but important to realise that it is better to focus on facts than guess work.

BLK has 6.1M oz resource. It is producing gold over the 2 - 3 last qtr at approx. $2000 per oz. losing $400 per oz.

There is $39M in debt with $13M due in around 6 weeks.

They had $8M in cash at 30/9 it is probably less than $5M currently based on historical cashflows.

Unless Orion will rollover this payment, they will have to do a capital raise or refinance through another debt funder. However one would think that when they are losing $300 -$400 per oz, that not many groups would take the risk.

On that basis, unless they can produce above 2,5 g/t, then getting funding is near impossible.

My view is that 200,000 oz PA expansion is over and therefore no one will take it over.

Hopefully a larger group may do a JV, representing some value for shareholders.

Failing that VA is probably on the cards and everything will goto Orion.

Issue is what is it worth in VA?

Hoping that shareholders get value through a JV

Just my view. good luck shareholders.

Expand

I cant see what value a JV partner would gain from the deal.

Any predators would likely wait until the project goes into administration and pick up the assets for cheap like BLK did off Apex.

Now the pits pre-strip is near completion and the capital sunk, pending no further geotech issues with the pit wall, could this struggling miner turn a dollar purely from open pit mining?

BLK Price at posting: 14.0¢ Sentiment: None Disclosure: Not Held
3 Upvote

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