Originally posted by Bludog
As a "long termer", I think there is a compelling argument here.. Added to the points validly made in this discussion to date, it is absolutely clear that the initial developments of the mine, the logistics of the plant rehabilitation/upgrading, the sizable funding dynamics and the one off Hits (with weather, gold room fire etc etc), plus the major logistics of simply getting the right resources, people and experience in place ( at all levels).. all these have been a major challenge for this company. There are many shareholders that have remained committed, and continue to be supporters long term if given the opportunity.The reality is that this company if it achieves a debt free good cash flow position has the potential to succeed to the level (200,000 oz pa) suggested by management.The delays over the past 2 years have easily cost the company say 6 months (minimum) in the targetted progress on the original plan.
It is my view that the company now needs two key elements.. the capital implied by the options issue (which was an important part of and justified at the time of the past major restructure of funding). Secondly.. and, most importantly, in an unsympathetic market like the present SP, it needs TIME.... TIME TIME TIME... precisely say 6 months time
Time to overcome the production setbacks, time to consolidate and repay the debt position, time to do the initial establishment work of pit opening , time to complete drilling etc .. and perhaps finalise some of the peripheral projects etc etc. The most effect source of future capital for this company is the existing committed option holders..who are already indicating some intention to provide further capital if the company is successful to the sp 8 cent level. IMHO..The best source of capital for the company in terms of both timing and cost is the BLKOA options.... about mid 2019 . This gives a good chance to have the BLKOA options EXERCISED in full at a time when it is justified by the production/profitability dynamics.This can be achieved logically and easily by simply extending the options expiry date (say) 6 months, providing the company with the added time potentailly needed by the setbacks, and the profitability to justify the exercise price. If management... and shareholders.. are given this type of latitude (by extension of the exercise time) it is my view the whole dynamics effectively solve themselves WITHOUT any change to the capital size/dynamics that is already indicated to the market place.The benefits to the company AND all shareholders far outways any short term petty dilution considerations that may be in the minds of short term traders. ..All IMHO... Cheers Bludog
Thank you Bludog for an insightful analysis of the situation. Will you be making a formal request for an extension to the company’s BOD?
