Fangk The 48k ounce advance is definitely a loan, with the cost...

Fangk

The 48k ounce advance is definitely a loan, with the cost being dependent on the POG as they pay it back. Some miners try to pretend its not borrowing, like WGX did for some years, until they made their final payment in June 2020 on their gold pre=pay and announced that this was their final loan repayment (or words to that effect).

More generally in relation to OGC I am an interested watcher. I need to do some deeper research to form an opinion on whether to buy OGC. On the surface, at the current gold price and assuming all goes well for OGC (and not counting Dipidio), I would assume that by end 2021 OGC is producing 400k ounces and the debt would be well contained thereby making today's price look cheap. They will continue to spend a lot on capex and exploration - Waihji may be a net drain on their cashflow for some years.

However, anything can happen over this sort of time frame. I am expecting that without inflation the gold price could retrace lower by mid 2021 and so I prefer to just trade problem companies like OGC and SBM. especially since I have most of my funds invested in other fairly spec companies.

I may buy back into SBM and OGC for a trade if I think the gold price has reached a bottom. Having plenty of cash on hand makes me sleep easier, and fortunately KCN has been kind to me in recent weeks (but not today) so I am in hurry to deploy my funds.

loki