Glencairn Gold: A potential Gold Rocket

SUBJECT: financial position Posted By: production05
Post Time: 12/8/05 20:49

When evaluating a company's short term economical viability, among other indicators, I tend to focus in on the Long Term Debt situation. In regards to GGG, as best I can see, the long term debt is only $6M and the payment schedule is over a long period of time. In addition, payments are required in portions as opposed to a lump sum. This buys us a lot of time to get our house in order, if necessary. The final payment is not required until over a year and a half from now. Also, worst case scenario, the $1M in monthly (free) cash flow from Bellavista will take care of the payments without any problems. The payment schedule is as follows:
Date

March 31, 2006 - $500,000
June 30, 2006 - $1,000,000
September 30, 2006 - $1,000,000
December 31, 2006 - $1,000,000
March 31, 2007 - $1,000,000
June 30, 2007 - $1,500,000

In regards to their working capital position and the mill construction/purchase for Bellavista, as another person has already identified, a few other options are available for the company even without this offering. I think the $5M would be ideal but not critical given that assets are not at risk of being secured by long term debt defaults in the short term.

In my opinion, given the significantly discounted share price and the low risk scenario, GGG offers tremendous upside potential for investors believing that the high gold price environment will continue into 2006

2/
SUBJECT: RE: financial position Posted By: energyplus : 12/8/05 21:26

That logic works fine with well managed company's. But averaging down on this corporuption is suicide. This is just another reason why I fired that loser from Yorkton. This is just another spin-off of the same old festing mining cess pool from Ontario and Quebec. EP