This morning Continental Gold (CNL.to) gave us one of those “hello we’re here stop selling our shares please” NRs that didn’t work, the stock is down another 6% as your humble scribe writes these words. Add that to the performance so far this year and…
…there’s no doubt about it, you just gotta laugh about the way Louis Lobito Little Wolf James of Scamsberry / Casey Research told you to buy it on January 18th this year (after telling you to sell it in January 2016 when it was a $1.40 stock…bless him).
But leaving monkeys with dartboards aside, what is it with CNL recently, why has it been going down like a porn star at a stag night? Well for me the answer is to look at today’s NR with the eyes of a newbie to the story, albeit a newbie who knows their way around the financial world. Such a person would see this in the top paragraph…
“With the senior secured debt facility in place, the Company remains
funded for its 2017 planned activities with approximately $100 million
in available cash and liquidity and remains on track for first gold pour
in early 2020.”
…and surely think:
1) Took $100m in debt
2) Good for 2017
3) No production until 2020
4) So how are they going to fund 2018 and 2019???
And there’s the rub. Why own this company now while it’s owned by the banks? Why not wait until the end of the construction process when we’ll know more about whether this mine will work?
Still, never mind, CNL are conducting a site tour this week, Sprott, and Oppenheimer and a bunch of others in attendance with Ari and Don Gray leading the tour. We should get another round of pumpy pumpy from the sell side whores soon enough.