especially when the stock price is now below 92 cents ????
For him to realize any profit, he must hope that the share price exceeds $3.07 !
Steal Partners does not have a good reputation... They did the same with Adaptec...
SEC should have a close look at how they operate...
He simply cannot count !
Straight from the horse's mouth on Nov 4th 2014,
"Well, that’s your opinion. If I take your number of 100 and I’ve got 58.6 million on my revolver and I can generate $50 million, then I’ve got 12 months of run rate."
12 months of run rate ?
After 10 working days, S-3 was filed. So much for his 12 months of run rate !
Was he the one who recommended that the company issue debt rather than equity on May 16th 2012 when the closing price of the stock was $23.82 after he joined the company on March 6th 2012 ?
Whoever recommended the issue of debt vs equity should be fired !
That was like two years ago...
I agree that something is not right with the issues of the new shares...
After the remarks made by the CFO in the earnings call on Nov 4th that they had at least a 12 months run rate... bla ... bla..
And then to issue one bad news after another just before the issue of the new shares makes one wonder what the hell is going on with this company !
Noticed the short time frame of just 3 working days before the announcement and the closing date... this is the shortest in the company history of new share offerings... Previously it was 9 to 13 working days.
(and not forgetting the heavy discount, the issue of warrants, lockout periods etc which are all new to this company)
And not a pip from the other hedge funds like Paulson and Soros.
Something is certainly rotten in the state of Denmark !
Who really knows the truth ? I don't..
This is just based on published numbers...
But US is sure living on the edge just like ANV.
The management needs to focus on the near term and they better have a plan B ....
Because the critical limits have not been reached yet...
Just a comparisons:
General government net debt (Percent of GDP) 169.734
General government gross debt (Percent of GDP) 175.08
Net international investment position in % of GDP -121.1
General government net debt (Percent of GDP) 118.477
General government gross debt (Percent of GDP) 128.934
Net international investment position in % of GDP - 116.2
General government net debt (Percent of GDP) 92.234
General government gross debt (Percent of GDP) 116.093
Net international investment position in % of GDP - 98.5
General government net debt (Percent of GDP) 80.36
General government gross debt (Percent of GDP) 104.196
Net international investment position in % of GDP - 32.1
Source: World Economic Outlook Database, IMF, October 2014
It is just poor financial planning for the company to end up in this financial situation. They could have seen this problem a year back but instead they chose to bury their heads in the sand.
To issue share and warrants at such an incredible low price and at the end of year is sheer incompetent.
CFO should be sacked !
Their Hycroft Mill Expansion Prefeasibility Update in Sep 2014 at the Denver Gold Conference looks great with a lot of figures and photos ... too bad that they are currently facing some cash issues.
Only a partner with deep pockets can help them out... the Chinese certainly can for two reasons:
1) The Chinese usually have a longer view of their investment
2) And they prefer to be in the background and let the Americans run the operations
That's why I have a mixed feeling about this company. On one hand they certainly have a mining plan to take the company forward with phase 1 and phase 2 of their mills expansion but their financial plans are too shortsighted. They certainly need a partner with deep pockets to fund their expansion but leave the daily operations
March 6th 2012 - new CFO
May 16th 2012 - Debt Issues $400million at 8.75% when closing price is 23.82
Dec 2014 - Issue new shares and warrant at $1
And not an encouraging word from the management....
You would have thought that all these well paid men of experience have the foresight to prevent destroying this company,,, apparently not...
So what is the executive chairman with over 35 years experience in this industry going to do....shareholders must be asking ...
And are they still on the same planet as the rest of us by hoping that some investors will part with their 768 million on the phase 1 mill expansion.
The management are just treating the shareholders like mushrooms... keeping them in the dark and feeding them with manure....
"Allied Nevada Optimizes Phase 1 of the Hycroft Mill Expansion with Improved Upfront Capital"
" A detailed capital cost estimate of the optimized first phase is expected to be completed in early 2015."
( as if they have enough time to complete this detailed capital cost estimation.)
And they need a capital outlay of approximately $768 million !
Are these guys for real ? Or is this just a distraction ?
If this is for real, then who do they have in mind who are willing to fund the $768 million ?
"A detailed capital cost estimate of the optimized first phase is expected to be completed in early 2015."
This is not a SMART objective.... commit to a date, you slackers ! These guys have no sense of urgency.
To issue new shares and warrants at these prices clearly indicates a failure in the management and in their financial planning. There is simply no excuse.
“The ability to recognize that the winds have shifted and to take appropriate action before you wreck your boat in crucial to the future of an enterprise”
― Andrew S. Grove, Only the Paranoid Survive