They are going to have cash flow, but the cash flow will not be enough to finance any project.
It is the same as if you own some real estates, the rent may be more than the expenses so you are cash flow positive, but it will not be enough for you to buy another property. If you are not satisfied to sit on one or two properties, but want to have 20 or 50 properties, you have to put in more money or find other investors.
In their business model, they need to continue to do deals.
In Aug, they paid 2M into Rambler project, another 13M to be paid in next few months.
They need to get more project, each may require 10M or 20M. These investments will not generate cash flow until they produce in a few months or years.
Eventually they will grow and become a bigger company with steady revenue stream.
They don't become SLW or FNV in a year. They have to become GLW first, which may be 1-2 years away.
My holdings in SSL dropped today, but I am trying to make up for it by buying more. I hope in a few months it get back to 0.80, which was its average price for the last month. |
