firstly, the issues in Mali have as far as the news reports and geography go, nothing to do with Burkina Faso. I have only done some light reading on the issue, but as far as I can tell, it will not effect GRYs main project in any way shape or form.
Firstly, project is approx 1500 kilometers away from the violence.
%90 of Mali's population do not live in the effected region.
Anyway, I was mainly going to talk about your second 'issue', regarding funding, the company is now sitting on approx $60 million in cash, with around $26 million in investments. I agree that alone, this is not enough to fund the project... but that is what borrowing is for. Surely you can see that like many many other gold stocks, they will include some form of hedging to allow them to dept fund the project.
GRY has already shown they are able to reduce initial capex by $100 million, which means that they should be looking at a full figure of about $200 million. I am almost certain that if they have $50 million cash when they get to financing, they will be able to borrow the other $150 million. just IMO though!!
btw - Have you seen what MYG was able to do, they have almost financed their entire project through either debt or a form of forward sales... (they raised $2 million in cash, the rest is project funded, so it is indeed doable).
Anyway, appreciate your differing view, I would be interested to hear of any gold stocks that you are positive on and why, in the sense, that they are at the same stage of development as GRY but have somehow been able to get funding for their project, without raising capital or using debt?
Cheers.
GRY Price at posting:
54.0¢ Sentiment: LT Buy Disclosure: Held
