RE: Buys or sells9 Jan 2020 12:14
BN in an ideal world, your way makes perfect sense.
With gold prices up over 35% in the last 6 months, if we reduced cost of production (which we’re actively pursuing) it means higher margins and more cash available to pay the banks quicker.
On the flip side of that, if we did a deal before reducing aisc it would mean we pay back ‘x’ amount based off the second and third quarter results which would likely be less (in return taking us longer to pay it back) but having more cashflow once cost of production is reduced to go and explore other areas of the mine with all the extra cash coming in.
Its like saying why do a deal now, when in 6 months gold may be at 2k an ounce. Lets wait til then and have mtl pay back more, doesnt work like that. Banks haven’t lost a penny here so far and unlike day traders (lol) are happy to wait for their returns as proven here so far. GL