There's a WA goldie, presented at AMEC, closed at 8c yesterday, MC of $34m, 423m on issue, 588m fully diluted, though that would add cash of $17.3m. They just secured $11.3m from Credit Suisse (Nov '10), but had to issue 30m 14c options as part of the package. That's an additional 5.3% of all issued equity. They have a DFS coming in March, aiming to produce late 2012. CS made them hedge 50k oz, they achieved at AUD1847/oz, not a bad outcome!! They're targeting 50k oz Au a year at this point. They've got 350k oz Au in measured and indicated and a further 180k oz in inferred, plus copper and silver. I think their project has an NPV of $180m or something like that. The debt will be used to buy out the remaining 30% ownership of their project as well as completing the DFS.
I think I agree with a recent poster, maybe we can issue a little more equity, just get that god damn finance in place before the next sh*t storm hits - imminent!! I'm not sure how 'choosey' we can be as a junior start up with a radical, untested program for shipping!! We may well hold something special in IFE shares, I love how tight they've kept the register, wonderful stuff, but at the moment, right now, these scripts are akin to toilet paper. We need money. Full stop.
I caught a bit of Bad Santa last night, Billy Bob Thornton was perfectly cast. He tells a kid to start wishing into one hand and sh*tting into the other, tells the kid to see which hand fills up quicker. Now I think, in mid December, and talking about IFE, that is quite a relevant observation by Santa Bob. Stop wishing and dreaming and start signing contracts IFE, even if that means issuing some equity. This isn't 2006/07, there's a war on, investment banks aren't laying people off for kicks.
Ian told me face to face to expect the debt finance either two weeks ago or the week just gone. Will it be next week? Or will I just have a hulking turd in my left hand?
Enjoy the weekend fellow wishful thinkers!!
TYX Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
