In operational terms the mining work to date appears to have held schedule if you look back over the past 1-2 years for underground and open pit development. This is quite feat given the complexity of running four operations, and indicates depth of management and workforce.
But, over the last 12 months there has been a bit "we dug it up, now where is the gold?". This seems more like a geo/model/drilling type of issue with some of the inferred parts of resource. And it has led to the last two cap raisings as there has been insufficient cash flow to fund development work. Additional Geo resources have been added last year.
On the private placements that these two raisings have been both in the UK to my understanding. Hard to say whether these investors are really doing their homework, or whether Cahill and team are very good salespeople. Or both. Am a little tired of not getting a chance at invest alongside, the dilution from this and options to staff is significant over this period, will be sharing this with the company.
I thought at SP $1, the stock was fair value and expected to run up with more production. I think adding at under $0.75 makes sense. I think they can mine, but confidence that the gold is where they say it is will only come from a couple good quarterlies.
My thoughts only.
NGX Price at posting:
75.0¢ Sentiment: LT Buy Disclosure: Held
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