Pinnacle Activity Ticker
Canaco's Cash
--> $95mm in cash right now
--> $11mm planned expenditures for remainder of 2012 (PEA done on Magambazi during that time)
--> $84mm cash balance at year end
--> $84mm / 199,708,103 shares outstanding = 42 cents in cash / share at year end
--> $20 / indicated ounce = (721,300oz * $20) = $14,426,000 (7 cents)
--> $10 / inferred ounce = (292,400oz * $10) = $2,924,000 (1.5 cents)
Drum Roll Please.....
50.5 cents
Join Now! It's Free
Test Your Investing IQ
Stock Challenge
What's the Stock Challenge? Find out!
| 1 |  | |
| 2 |  | |
| 3 | | |
| 4 | | |
| 5 | |
Do you know how smart of an investor you are?
Related Articles & Blogs
Community Talk
Re: Canaco's Cash
Great insights Southpen. I love the idea of using some of the cash and buying back shares. I hope you don't mind, but I sent an email off to Canaco to suggest just that. I suggested a $5mm buyback which would mean 12,500,000 if they could get them on the market at 40 cents. Likely that would not be possible as there would be a flurry of buying ahead of that announcement if it were to happen.
This would still leave the company with $79mm cash at year end, or ~40 cents/share.
It would be a nice step towards getting investors back on their side.
Thanks for your thoughts.
Re: Canaco's Cash
To have in excess of 100 million shares and no final feasibility study (no reserves), sounds pretty bad.The cash value, is the company but what about their burn rate. ? How long will that strong cash position exist? A relatively low grade ,small deposit in Africa which is riddled with political corruption has to be high on the risk meter.I would not expect such a large cash position but considering the shares out and the size of the deposit it becomes less of a draw.
If Canaco could buy back 150 million shares at .33 cents (not likely),leaving the company with 50 million out ,about 63 FD (which would greatly increase managements interest),,,then they would still have an excellent cash position of about 40 million . At that point , do a NR - PC to show investors how they intend to manage ,still a large cash position.Then we might really have something here.
10/oz inferred is low value and 20/oz indicated is a bargain. What I'm saying Schiff,is I don't feel your over valuing the company .Your calculations look very conservative,however I see companies that present this way being a little less likely to succeed long term.In the short term I'm sure there's some money to be made,because of their presentation. it looks enticing ,at first glance .