Member Info for UpDownFlat

Yes I saw the unsold Gold as well. Since gold is up $150 it was a good move to hang on to it.

If IRC can pay their debts and make a small profit annually, then I don’t think the sale of IRC for $10m benefits POG in the short or long term. It also ties the BOD and Executive hands from doing more transactions that are not in the interest of the shareholders. We dont need them to get more debt, we need them to pay back debt.

PVX makes a good point. One quarter's worth of third-party concentrate is around $100M of new working capital, constantly tied up. They would have need to acquire this last year and used the presold gold as a facility, on which they appear to be paying a large amount of interest. But they did say that the pre-pay has reduced $60M in Q1 and that it should be gone by the 2020 year end.

Kenj

"IMO this company has been run for the benefit of the bondholders, rather that the shareholders."

Maybe the new chairwoman will make a difference.

The presentation and the reception was poor, but this does not mean that they are bad operationally. With gold at $1700 this company should be valued at 60p-70p based on 2020E (by the end of the year). I think the cash generation is important.

RB
Page 14, at the top.
I believe the revaluation of the convertibles goes through OCI
You are right... would have liked a B/S

RB,
These are there numbers for 2019. Yes they have to purchase new concentrate at new prices, but it is a guide to there target margin for these purchases. It is also fair to say quoting from their own presentations that their internal costs drop with volume. They themselves predict 30% reduction in cost based on throughput , so 15-20% GM in 2020 is the best guess I have seen.

If I heard correctly they said that the level of prepaid gold have gone from $180m in 2019 to $120m at the end of Q1. A $60m reduction.

From the segmental in 2019,
Revenue $62.9M
TCC $53.4M
Therefore GM is 15%,
but this should improve in 2020 due to cost reduction from increased volume.

Am I reading the hedging correctly, 3.5Koz x 12 = 42koz per year, just under 6% of their gold sales ?

Kenj ,
I mean net debt (debt less cash and a few other accounting items). It is generally accepted to use the abbreviated term "debt" for this. But its great to have someone keeping track of this.

would have been a dream 1 year ago. This is a highly leveraged play on Gold. Gold is medium/High. Maybe going higher LT. But in the meantime it is reaping the rewards of a medium gold price.

Half its debt gone this year. 100% gone next. $40M interest in the bank before they wake up in the morning.

Good post WestEast,

I think this validates my calculations, earnings and cash are about to explode at the current Gold price.

I dont think the price of Gold is determined by the general public browsing in 2nd hand shops. It is mostly determined by Treasury's and used for wealth preservation when the real yield drops too low.

We would have been happy if it pulled back from the high twenties.

Now I just think anyone who sells is going to kick themselves.

Kenj, this is just poor translation.
Since I think WE is accessing Russian internet sites, which I dont think anyone else on has the ablitly to.

Whosnext,
Westeast is posting access to articles the rest of us dont have. Let's not be critical of that.

Oh yes, but it still has poor corporate governance. High risk, high reward.

uselessinvester,
this was brought down by increasing debt, declining production,increasing cost and declining gold price. We now have the reverse decreasing debt, increasing production, declining cost and increasing gold prices.

Wouldn't it be great if our Russian friends just put three floatation lines staright into the new plant instead of two. They should be rolling in the cash to do this right now.