We all know $700 is a low ball figure, even the interviewer picked up on RP's BS, but lets' consider that it is true, remember with this character you have to listen to every point as he always has a backdoor, if he was a lawyer he would be in Que. politics. At least he is now coming semi-clean with restatements that even a basher can find spec's of truth in.
FACT - At PDAC Metanor was not an exhibitor.
Cash cost - SSL owns 20 percent of oz, therefore calculating the production that MTO "owns" the cost per ounce goes up significantly. $700 per ounce for 80 percent is already $875 per MTO ounce. This does not factor in the loss per ounce to SSL because MTO still has to cover anything over $500 they are paid. For argument we will say $875 - $500 = loss of $375 per ounce produced for Nolan (P.S. good one Nolan - discloure I am long SSL) Considering these FACTS I remain steadfast with $1000/oz cash cost- even though it will be reported as less (all companies find ways to bury costs for optics)
Finacing - all I have to say is wait for it. RP has said no more financing since the first time I met him.
My favorite interview comments (may not be exact quotes)
Cash cost is not important at this time, except to investors...
And 18oz to your pocket, HA HA HA...
The good good job management did negotiating a "balloon payment". If my memory serves it was loans like this that took down the entire USA and bankrupt several financial institutions. This type of loan is not even legal for a lender to propose, but as we all listen carefully it was not the lending institution that negotiated these terms but the Spectacular, superfantastic, MTO management team that negotiated a balloon payment. This type of loan (outside of moneymart) is known as a mortgage buster, junk loan or sharking the client.
And best for last.
That includes ME...
Seriously, you cost enough to make a difference to the cash cost. My guess is that Accountant Ron is buring more costs than even we suspect and this is his disclaimer statement. Just a thought.
Hey little Dog, you should be happy as you can buy the stock for the same price I paid. Remember you were saying "It's impossible that you always buy at the low point" and "you don't own stock" now is your big chance. It's at an all time low (- a single 7 minute event when she touched .135, wonder who that genius was, my bet is an algorithm designed to steal your shares by taking out stop losses)
Anyhow, good luck all. I don't see much upside this the summer is done as the overall sector is being punished for exactly this type of behavior and it will not end until the EU crisis becomes full blown. That will not happen until the resumption of market money flow in September. Be prepared to hear all about the new highs in the market and how everybody is dumping money into equities. This is a red flag and not one to be taken lightly. We will see 2009 x 2 for our next correction, coming soon as the Play in May syndrome takes hold.
All comments are my opinion only, well maybe some other people as well but the important part is that it is an opinion only. Something we are all entitled to.
Happy Easter all.