New PR out. The news is not new (announced this at the shareholders meeting). But it does need to be stressed, given the bias of the Barrons article. Jason had asked Santori to hold off on publishing the article until after Q2 earnings release; a fairly reasonable request. Santori obviously had other intentions.
But the fact that Jason wanted to wait until after earnings tends to suggest that earnings is going to be a very positive event. Can't wait.
The last line of the PR
"We look forward to sharing the full second quarter report in the near future.”
is intriguing. Wonder if they are now going to accelerate releasing the earnings. Warning to the shorts.
>And in Q3 thee will no decrease in the overall treasury at all, because they will have ironed out all the kinks in production by tat point in time.
And that's really the crux of the matter. What is the risk premium you are paying for GORO versus peers? I've heard it all before from these mining companies. Everything all good until they pull the rug out from under you and say ... oopsy sorry, followed by a parade of excuses.
Personally, I would rather pay a much smaller risk premium for undervalued dogs on the rise like Coeur's (CDE), who have already paid the piper in failures and are now turning it around and executing.
Another brainwashed long. Heard the same BS logic about Sinclair's company too. "Sinclair doesn't want to reveal his hand to prevent a buyout" Now you folks are saying it too? Common theme amongst cult stocks.
Why is this company so difficult to understand. Treasury gets depleted because that is how Goro and Hochschild set up their private placements. $8 mill was designated to initiate and continue mine development. Of course treasury will get depleted. Why did Hochschild specify this ....so GORO can get the premium ore quicker than waiting for the less fruitful open pit ore to pay for underground development. So lets review: Hochschild gave GORO $65 million in PP after reviewing drill results using their own geologists, then they demand use funds to get to the rich ore sooner than later. In the mean time GORO mills out 4,000 ounces in 45 days in order to prevent Hochschild from being their only source of funds. Lets review again:Hochs wants to get to that ore quickly, GORO wants to limit Hochs influence in the company. Jeez....wonder why both are so eager get get control of that L"Arista ore.
As far as the early dividend goes, GORO is still categorized as an exploratory miner, which allows them to maneuver their balance sheet....because start mines are expensive and governments give start ups tax breaks. GORO also has had $40-50 mill in tax credits that it has been able to use, allowing a larger dividend at this early stage. Interesting approach....give it to shareholders because they don't need it. Why. Because Hochschild has prepaid for the mine construction, the mill is already paid for due to earlier capital raises....so who's left.....that's right.....pay them shareholders. By the time the tax credits get used up, GORO will be mining and milling 1000 tonnes/day of the ore both Hochschild and GORO want at so badly. And the reality about the lack of 43-101 is simple. As soon as this report gets published, GORO becomes a takeout candidate. Look at this from Hochschild's perspective. Their $65 mill investment has quadrupled...which is great. But they will be seeing $50-100 mill of dividend getting paid out yearly if GORO management stays in charge. If they could gain control early and cheap, they keep the whole enchilada. The savings from not paying the dividend would pay for the acquisition. Again to summarize: this whole Barrons hissy fit is inconsequential, the real story is GORO trying to preserve control by keeping the share price too rich for a spec buyout from a buyer who doesn't know the true resource. The rocks are there. Hoch knows it. They have a warchest ready since their Lakeshore sale. But GORO refuses to play ball....why....because this ore source is huge and rich. The Reids want this baby for themselves and the lucky shareholders that can grasp the reality of this situation.
PS...you nutty bashers are all on ignore...so circle jerk yourselves till you ain't got no more
When they gonna share the 43-101? The real question here is if investors have been sold a bill of goods. Nothing I've seen yet from management's response has me convinced one way or the other.
According to President Jason Reid at the annual meeting last month, the 43-101 should be done by year end and hopefully sooner. They are drilling the required holes as fast as possible with the drill rigs they have available. There is a shortage of drill rigs and crews according to Jason. Give it a few more months and in the mean time, enjoy the dividends.
I and a number of others from the private Yahoo board had dinner with Jason Reid the evening before the annual shareholder meeting. One of the topics discussed was the 43-101. Jason said he would really like to see it published by end of year, even if that means they don't get as much analysis and drill results into it and have to accept a lower resource amount.
He and Greg Patterson have been doing presentations for a number of companies. Their presentation in front of a number of large potential investors (institutions) in Toronto recently opened up their eyes to the huge market in Canada that cannot be tapped until a 43-101 is released. Hence, why he wants the 43-101 out sooner than later.
If they can get some additional drilling below the Arista 500m mark to add into the 43-101, all the better. But they will go without that, if needed, in order to get it out.
Oh, and before some idiot basher asks me whether I am an insider for knowing all this, read the beginning of my post where I state that this info was shared by Jason Reid at dinner. And no, it is not material.