what are main issues with this company??

Just thought I'd add my concerns about this company and interested to see others' thoughts.

1. High debt - debt ratio understated in calculation as mentioned in a previous post by SG

2. Large debt repayment due in just over 18m.

3. Operating cashflow would probably be negative at current prices.

4. Most mines are high operating cost mines such as Telfer and difficult to reduce costs.

5. Threat of class action from Slater and Gordon due to their analyst disclosure back in June.

6. Pending court case in March with another company seeking claim to Cadia mine.

7. Company morale must be fairly low.

8. Major risk to viability if gold takes another leg down to say $1000 which hopefully won't happen but could - especially as the reduction to US stimulus continues throughout the year.


They really should have a large CR while they can in order to stabilise the company. If the SP drops to $5, then a CR becomes harder. I think the company is in denial about many of these issues. I sold most of my holding and now only hold a small amount.