This alone could propel the stock back over $1, it seems to me...especially with the CEO's suggestion in the press release that they will NOT be looking to draw down beyond the initial $5 million but, rather, would look to fund any additional cash needs from operations. I consider such an implicitly reassuring statement extremely bullish.
Bad news, they are continuing to burn cash, good news it's not a gusher. We need to see the quarterly to understand how much cash was consumed in Q4. This is now a cash flow struggle to allow them choices to take advanage of assets. I think they've cut costs, closed the third mine (for now), cut capital and have done the right things since mid year 2012. The new management team is doing the things that the prior management team couldn't or wouldn't. I want to see how they are going to grow production (takes capital spending), 21 k oz. per quarter will not be enough, hopefully we get some guidance in the quarterly call that will detail their plan self sustained viabilty. Before anyone hates on this post, know i've had this stock in the $5's, took tax loss in the $4's and now have a decent position in the $.60's. I want these guys to succeed, but i need proof and will be listening to the q1 earnings call very closely.
Agree with your comments about new management's progress and the need for more production. Jag should announce their 2013 forecast this earning's call. They need to return to annual production around 150,000 oz. and get cash costs down to around $800 which is still above industry average. This was near the level of production and costs in 2010 and gold was only 1,200 oz at that time. This would give JAG significant free cash flow in 2013. Of course this means they need to restart Paciencia soon to reach those levels. They also can have no more production disruptions at Turmalina and Caete. It appears they have completed the mine support programs at these two mines. I would hope they also have been working on mine support at Paciencia during care and maintenance. Presumable it has the same issues at Turmalina and Caete.
As regards the draw, Petroff did exactly what he said he was going to doing during the last cc. I'd be concerned if he drew in excess of $5mm, but so far Petroff's word has been good. Always a lot of questions with Jag. Hopefully some answers during a very significant conference call this quarter.