$6m in the bank, roughly $3m for the quarter to finish development of the mill (and I assume covers commissioning costs) then we goto production phase.
As Filby pointed (good post Filby) our cashflow will start with dump & tailings (lower grades, but also lower production costs as already close to mill and partially broken up). They can then start bringing in cashflow from higher exploration grades.
I don't believe any (researched) shareholder is under any illusions that these guys will need more cash as they ramp up there exploration programme and need to also cover short term working capital requirements. So a CR is inevitable at some point in the future
I for one have no problem investing in a company that capital raises for growth (not just for survival).
The question is when do they pull the trigger for CR and for how much. This company is moving swiftly from a new owner of an existing (closed) mine to refurbing the mill, opening up new greenfield acerage, potentially expanding the processing size of the mill, finding manganese and aggresively exploring their extensive (and well located) real estate.
As a fly on the wall of a board meeting I'm sure there discussing whether they look to the market now whilst gold prices are holding up and we are emerging from the GFC or should they wait to when they are in better shape and are producing gold and have increased their reserves (which is only weeks away).
Either way, so long is they continue to improve, grow, produce gold, find more gold, expand the plant and make money for us shareholders then its all good!!
Good Luck All
Maddoc
SBL Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
