Spoke with Steve Brunelle yesterday. I had to read between the lines at times, but here is what he had to say. He said there would be a management change at BAY as their expertise was in development / exploration, not production. Based on old reserve estimates (last November) he was shopping around for debt financing. I questioned him specifically on this. He said with a one year payback, as a shareholder, he would prefer debt over dilution. Estimated capital cost is about $40 Million US.
Althuogh, we preferred debt, he indicated no banks would give 100% financing, so expect some dilution. Fully diluted shared will stand at about 12.2 Million shares.
Column leaching still going on and silver still being produced, so recovery rates are going to go up. One year payback based on conservative recovery rates.
Expect next PR, with drill results early/mid July. Reserves will certainly go up, but no formal calculations until completion of drilling in the fall. Expect a (pre)feasibility report to be produced after that time.
He said several analysts had NAV at $5.00, based on November numbers. Expect them to go up.
I asked if they we discussing JV with anyone. He said "I'm not at liberty to discuss that, but I will do what is best for the shareholders".
F.S. |
