The market does not like this Canaccord analysis, but it probably is correct. e.g. more shares to be issued at yet another low price instead of cash from gold ingot sales. Maybe they are hoarding the ingots, or cannot find a truck to send to Winnepeg to sell to the finished product mfg's. IF they sell 10000 oz of gold that is maybe $11mi US, but need to sell triple that to avoid a share issuance if for some reason a better balance sheet will make share price go up?. Who is in charge of mining? That guy needs to kick #$%$ to get the ore into that conveyor. no news until Sept 10th, and Canaccord got fed up I guess, but you would think they have the inside information.
The way I looked at the f/s it appears the gains are described in note 14 and 15, e.g. exchange rates and a revaluation of that debt for something called fair value. not from gold sales, but the inventory footnote shows $C2 million of in circuit and finished metal, It would be nice to learn that the pile is getting bigger, or some sales have occurred, or both, etc. But have to await Sept 10th for any comments I guess, and the meantime nothing new. A Q about whether the $77M of cash and Canadian T bills includes the debt, the A is for sure. Since loans for commodity co's are gonna get tighter I would suspect drawing down cash loan keeps everything on track. The accounts payable is $8 vrs cash on hand of $11, so the T bill's will provide working capital until some gold sales occur, and that date is ?? when?? Gotta be happening. miners being beat down again, again, and will continue until ....? RBY needs to sell and show a good g/t to get the share price up. up. Note all of the options are higher than current price, but there is a strange .76c noted in one of the footnotes, again something I am unsure about.
Hopefully next week another low addition of nat gas into storage like current and the past week's low additions vrs 2014, when storage was so low as to create that huge price that caused the whole industry to ramp up production of nat gas and get into the current weak pricing commodity cycle.. I am holding as I believe a 54% nat gas co w no debt due until 2019 will survive. Believe the fear was ch 13, or 11 for margin players, like what is happening in the coal industry. If you look at CHK +.19% today at one point, and a close of +16%, and their hedges are not as good; but on the other hand not as leveraged as LINE looking for nat gas prices to go back to the 2014 level, or could it be the 2011 level for pricing?, not probably until 2016 winter will a real recovery ensue in nat gas pricing, if winter is cold. Depends upon supply vrs demand, and last couple of weeks have been low supply addition into the salt caverns, etc. Would of course be nice to see an addition of only say +15BCF next Thursday. That will propel this nat gas sector. look at the EIA Thurs storage release and the historical chart for nat gas. And wait for demand to pick up for kwh producers vrs the coal sector, who is using less elec? Auto sales up, population up, housing up, too bad China, they use coal to excess, and probably will be thinking to convert a few plants to nat gas if they can get some from Vancouver routes.
The distribution news came out 5 PM EST, just like last month. Unfortunately I bot earlier in the day. Lets see, Morgan Stanley says $11 target, Zach's write up is nice; My average is still underwater, but the cash distribution will be fine for the next 3 years with the hedges, and finally the rig counts are declining so price will increase. Hot summer will see nat gas demand prob up since several? coal burning kwh plants are closing in 2015. Coal leaves a lot of sludge, and DUK got hammered by 60 minutes a month ago. Wonder if they are closing a few, or converting to nat gas usage from the Marcellus.
In any event I am gonna buy some wine with my +10c.