RE: Bad news - Peru extends lockdown till mid April27 Mar 2020 09:17
NI, you know I like you and like chatting to you right... but look at your post in Feb when discussing HOC and FRES..
DK - and if you're in HOC, then good move. Their capex/operating cash flow model is way above industry average and supports their exploration phase which will really bolster the life of asset. In the meantime, they throw off cash... something that FRES are NOT doing.
Nickel_Investor
Posted in: FRES
Posts: 6,495
Price: 706.40
No Opinion
RE: FRES is struggling compared to HOC because of the balance sheet21 Feb 2020 11:30
DK - if you go the half yearly cashflow statement it becomes evident pretty quickly that FRES has problems. The issue then from h2 is that production downgrades have offset much of the metal rise and capex is still silly high. With monster spend need again in 2020 any cashflow gain is going to be totally marginal - FRES will need a materially higher gold and silver price. There will be many investors exiting just before the Finals are released...
Nickel_Investor
Posted in: FRES
Posts: 6,495
Price: 706.00
No Opinion
RE: FRES is struggling compared to HOC because of the balance sheet21 Feb 2020 11:22
The difference between HOC and FRES is that HOC generates substantial cash post opex, capex, divi's and taxes.
Nickel_Investor
Posted in: FRES
Posts: 6,495
Price: 712.20
No Opinion
FRES is struggling compared to HOC because of the balance sheet21 Feb 2020 10:47
The update for 2019 will NOT be good. Capex will have eroded the cash pile pushing NET DEBT higher. As for 2020, it's marginal even at these spot prices because the capital expenditure requirement is so high. FRES have already talked about challenging grades and geology. Hochschild Mining is a much better pick....
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