Crnd11 Oct 2016 14:53
Good post from Dusseldorf on advfn
Dusseldorf
28 Sep '16 - 11:29 - 2226 of 2280 2 0
badger60 - there is nothing 'new' in the interims update - valued at ~£2m it's been price to be diluted / go-bust for some time by the market. A profitable CRND with access to underground mining should be $25-$40m (IMO), obviously impending dilution impacts the speed and extent of price recovery
Some facts which add to future prospects:
a) The significant gold asset the company owns is getting closer day by day.
b) The company is in discussion to defer the due date of the Redstone loan note
c) The company is in discussion to raise $4m through sale of less than 25% of it's 75% holding in subsidiary
d) The company is in discussion with various parties who want to invest money in exchange for equity (Why invest in equity if you thought there were no prospects of a price recovery)
e) The company has agreed an offtake agreement to aid working capital
f) The company is looking at it's own surface processing project, looking at new and existing resources
g) Two replacement company directors are to be announced within weeks (perhaps from the same company who wants to directly fund in equity?)
h) The company has additional unprospected assets that remain on the table (and have done for some time pending approval)
i) The company has circa 90,000 oz gold available above ground
j) the company has $262m(!) accumulated tax losses to offset against future profit
k) Company assumes legal issues with Puno will be resolved, whilst no economic benefit will remove some uncertainty
There are other factors too, but given mid/late October is a target for 'new' CRND to revive, I'd rather be in than out.
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