Generated $17,500,000 cash this quarter from operations! Strong Profits, Huge Guidance!
Bogoso/Prestea open and running
GSS is throwing off huge cash since the closed mines opened....
Company Generates $17.9 Million in Cash from Operations in Q1 2012, versus $19.5 Million in Q4 2011 and $5.9 Million in Cash Used in Operations in Q1 2011
GSS back to strong profits
look at production #'s for 2012:
2012 Forecast Bogoso/Prestea Wassa/HBB Combined
------------------ ------------------ ------------------
Oz produced 210,000 to 225,000 140,000 to 145,000 350,000 to 370,000
Cash operating cost
($/oz) 1,100 to 1,180 950 to 985 1,040 to 1,100
Good point on the generated cash. What I also like about this stock is their production figures and exploration potential. Compare this with some Canadian juniors with lower production and limited exploration potential. Also on the plus side now--gold price is at 1562 ---well away from the low of 1533
with over 100 million cash on hand my guess is the rest of the debt that does not convert will be paid in cash.
This is great news, looks bad today but that is because they shorts are trying to spin it off that way
in conf call mgmt said they would be confortable with around 40-50 million cash
todays news meshes perfectly with their intention to retire the remaining debts with cash.
Now the bond issue has been completely resolved
the coversion has been complete and they have over $100 million on books cash which they will use half to payoff the other $50 million
there will be no futher dillution which shorts were hoping for.
Their capex budget for the rest of the year is $80m (up $15m from their earlier guidance).
$100m - $80m - $50m = -$30m
Add the $50m they want to leave on their balance sheet, that's $80m they have to generate by the end of the year.
At $15-20m per quarter, that gets them a bit more than halfway there.
I have a feeling Mair's going to do another share issuance into the Nov convert settlement. He seems to have no problem lying outright to shareholders.
On the plus side, someone paid a whopping $1.42 for 1000 shares after the release.
If someone with deeper pockets agrees that this is tepid news at worst, I won't have to take a deeper mark on my position.