There are plenty more charts where they came from, but we’re keeping it short today. So anyhow, that working cap is expected to be negative when the September numbers are posted which isn’t very nice, but the interesting bit is that the costs of production are dropping. As belt-tightening has now become the order of the day at JAG, we should see costs drop further in 3q12 and 4q12 as well. So if JAG can produce to the higher end of guidance in the next couple of quarters, I reckon that 4q12 could see the company post a net profit. And that’s the key here folks, because with a profitable mining operation that’s finished with fracturing the cash, JAG could go out and do some sort of corporate financing from a position that garners more confidence from the market. With just 84m shares out, JAG has never diluted too much so there’s room for an equity-based raising here so just for argument’s sake, let’s suppose that JAG can raise $150m by selling 150m shares at a buck apiece (betcha they’d want to raise at $1.50, but this is just a think-thru model for the moment). We’d end up with a company that could pay down its immediate liabilities and even the medium term ones, finish with perhaps $130m on its long-term notes debt, plenty of working capital and a 2013 that would look for perhaps 120,000 ounces produced at a modest net profit. From there it could work on its plan to get back up to 150k, which might even have a chance now that the company isn’t being run by a total failure dumbass CEO like Dan Titcomb.
UPDATE: At the bell (while I was writing this) JAG moved up 4 spots to $1.18, but in the last few minutes the stock has really taken off and $1.28 has been printed. That’s coincidental to this post’s publishing time and very unlikely to be related, but it does indicate that other people are thinking about this new CEO appointment and probably along the same sort of lines.