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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Pianoman1997 who wrote (77910)	10/19/2022 2:04:10 PM
From: LoneClone	Respond to of 78404

That is really hard to nail down because there are so many moving parts to IAU right now. Here's what I know. As of Jun 30th they had over $130M cash. (We'll get an update Nov. 9 when they release their Q3 financials.) They are already making some money off the existing heap leaches that came along with the property purchases, and will be making more income once they start production at Granite Creek, early next year if I remember right. Now that I think about it, that is probably why they are being vague. They obviously have no need of funding at this point, but whether they need more along the way depends of the exact timing of costs and income, which is always subject to change when you are starting up a mine, much less four mines and an autoclave. Hope that helps, at least a bit. My hope is that they will not need any more capital, but it would not be huge surprise, or a major problem IMO, if I am wrong. LC

To: Pianoman1997 who wrote (77910)	10/20/2022 12:23:05 PM
From: LoneClone	1 Recommendation Recommended By Pianoman1997 Read Replies (1) \| Respond to of 78404

Some corrections.additions to my comments on IAU's finacial status yesterday, and yes, it's just gets more complicated. First off, I was wrong about their cash holdings, which were about $100M as of Jun. 30, not $160M as I said. But there are also other sources of income to consider that I didn't mention, the most important of which is 25M warrants. They are currently out of the money by about a dollar, but if as I expect the price of gold goes up and takes IAU's share price with it, they are certain to get cashed in. There are also more than 6M options, some in the money, some not. And then to make it more complicated, you need to take into account the gold and silver prepay agreements and streams they agreed to with Orion. Darn complicated! LC

To: Pianoman1997 who wrote (77910)	2/3/2023 2:04:00 PM
From: LoneClone	1 Recommendation Recommended By onepath Read Replies (1) \| Respond to of 78404

You are perceptive, because out of the blue we get the announcement from IAU of a $50M convertible debenture, quickly upsized to $65M. I figured that IAU had more than enough capital on hand to get everything built, so I am thinking that the impetus for this came from the other side, this being a case of "If they offer you money, take it". I don't particularly like the conversion price of $2.38 or the interest rate of 8%, but I know this management well enough that I am sure they will find ways to use this money to create value. And of course, every mining start-up is risky, and since they are doing four of them at once, it must be good to have this cash buffer, especially since production will remain minimal at this point (9332 oz Au last quarter). There are all sorts of details, including that conversion into shares can be forced if IAU's share price gets not too far above the conversion price. Here are the two PRs where you can read all about it. ca.finance.yahoo.com ca.finance.yahoo.com LC