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Scotia on Guyana Goldfields (GUY.to) UPDATED

Trevor Turnbull of Scotia gives Guyana Goldfields (GUY.to)  right going over this morning, downgrading the stock and all that on thoughts of its new mine plan set against the reality of cash flow and treasury. But the best parts are saved for the GUY.to CEO, Scott Caldwell: Example:

“…we think the $40 million in debt currently repayable at a rate of $5 million per quarter is too much for the balance sheet to handle.

This is a result of the new mine plan that accelerates the schedule for the underground development and foreshortens the cash flow generation from the open pits due to the loss of reserves. Nonetheless, CEO Scott Caldwell said twice on the March 27 conference call that at today’s spot prices the company can generate enough cash through the life of mine plan, the transition to the underground, all the activities they have including corporate G&A, servicing the debt and exploration.
We do not see how this is possible without a departure from the new technical report that would see underground development deferred and open pit mine life extended.”

As it takes quite a lot to get a published report past the compliance and legal desks of a large brokerage we can confidently state that what we have here, my fine feathered friends, is as close as a Canadian sell side analyst ever gets to calling a mining CEO a bullshit liar in public. IKN agrees, of course.

UPDATE: On the other hand, Scotia hasn’t exactly bathed itself in glory over its GUY.to coverage. Here’s a chronology of its recent calls on the stock:

 No wonder Turnbull sounds pissed at GUY, he needs someone to take the blame for those calls.

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