Here comes another expensive financing in 2013, my guess is somewhere right around May/June once they overspend on the 3,000tpd expansion (which you know is coming based on their history). Just amazing.
....they can't control the grade (no, it hasn't been proven - ever)
.....they can't control the costs (there's an exception to the model every quarter)
.....they won't pay themselves less (why should they if they keep getting financing?)
Take the hit, lick your wounds and move on to another stock.
Why? Even if they hit "projections", as Tony said in the webinar, assuming a cost per ounce under $800 (which has yet to be proven), their other costs & sustaining capital put the universal cost per ounce at $1200/oz. Tony said this explicitly in the webinar, please listen to it. If gold is at $1700/oz, that's $500/oz in profit x 150,000 ounces = $75,000,000 cash/year. So ASSUMING they can control costs, hit their grade, and expand on time, based on production TWO YEARS down the road, the company is valued at $750,000,000. Divide by 400 million and you've got a share price of $1.87, which is the optimistic number based on a series of favorable outcomes, and an increasing price of gold.
Please, take heed...