they cant do that because they are short on cash.
Most of the cash on the balance sheet must be used to pay off Accounts Payable. They collect payments upfront before they begin construction, and then use the cash to pay the construction costs as they build the plants.
Doesnt look like the stockholders of KGC did very well. Over the life of the company they appear to have about broke even. Buchan has definitely not done a good job for his public investors.
How much of their cash are they going to need to spend on another Stage 3 trial? I believe that is why the company is trading below the cash on their balance sheet. That cash will disappear.
Cash flow for the quarter seems to be a very important number such that he would have that number off the top of his head. Furthermore, this number was not in the press release. Why do they present earnings numbers for the quarter and switch to 9 month periods when discussing cash flow. These guys are shady!!
It seemed to me that management was very evasive about operating cash flow in this quarter and next. This is not a good sign at all. I wonder what they are trying to hide. I dont intend to stick around to find out. SELL.
I agree. Bob Buchan specifically stated on the conference call a few weeks ago that they would not issue more stock. He flat out lied. I do not like being partnered with dishonest management, especially when they do not own much of the same security I do.
Sentiment: Strong Sell
I suppose we could be wiped out by the capital leases we put in place with Caterpillar to buy the mining equipment, if we cant service that commitment due to low revenue from metal sales.
Looks to me like they are still struggling to produce gold at the projected rate. Based on the fact that they have produced 27K onces so far this quarter, which means 13K ounces/month pace, they will only produce about 40K ounces this quarter. This is lower than last quarter, if my memory is correct.