Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
Problem is aisc would spiral out of control and that leads nothing to pay lenders.I do think it will be sorted but if it drags out for a little bit longer, company would need more funds and that is not an ideal situation.Dan has to go.
Company cant afford to say no to coirca as other mine is at stake, in my opinion company has no choice but to pay them.However this process has to be approved by lenders and payments to lenders would need to be pushed forward.
Court I am afraid,suspension of operation would impact cash flows and company would need to push due payments further.However ramping production would be key to increase future cashflow and you cant do it when your main contractor is walking away.
Release an RNS to outline their strategy.We dont want after hours RNS to confirm speculation.Coirca does seem to have a decent list of clients and know what they are doing.So looks like whatever problem is Hummingbird has a part to play in it.
It is not just "short-term loan" only , future payments to lenders would be pushed too and this fiasco puts a question mark on every revenue/production forecast.This company has a habit of overpromising and underdeilvering and have only hit forecast coupke of times.It is due to rising price of gold that has helped them this year.
Hummingbird has more to lose than coirca, they should have paid when required.If this escalates it can lead to second mine closure and that is a disastrous situstion.My opinion is company is either seeking further funds to pay contractors or is trying to push debt repayments or needs lenders permissions to issue more shares and none of these scenarios bodes well for shareholders.Equity is worthless right now
Clearly company was happy with their performance at other mine otherwise would not have brought them in.Something is not adding up here, it is either incompetence,fraud or both.It is chain of reactions that can bring the company down.
So why does company not issue an RNS to clarify few things.In one of previous updates it was stated that contractors would be paid once mine is in production and that was meant to happen in Q2 2023.It looks like Coirca has been chasing them for money for quiet sometime and decided that enough is enough.Q1 results would be terrible if this drags on for bit longer.