News: NWH NRW Holdings To Support Gascoyne Resources With $12 Mln Loan Facility, page-24

Good happy Boxing Day morning Jacko
No cricket here .. ..beach in a bit but I have been diverting myself from thinking about the way the DOW crashed 653.17 points in a HALF DAY (???) on Christmas Eve by thinking how NRW management should probably be running America as well as the banks
Which leads to thinking on the NWH Christmas gift to Gascoyne .

Do you know what the $86 million ‘operating costs’ of our $300 million contract with GCY means? (from press story quoted in my previous post ?
..And have ever heard how many hours a day they work up there?


Beyond this - your comment .. “but at what cost?”
I thought about that too :
.... at a cost to us of a capital working facility of $12 million ( most likely NOT getting a lump sum paid off next week after all)

vs a return to us of :
- commercial interest rates
- masses of good Christmas karma
- good chance of the project continuing at least to 2024 (not 2025?) if the help is the key support Gascoyne needs to pull itself of it’s doldrums
-another year of work guaranteed plus the loan paid off even in worst case scenario ( or a dodgy gold mine of our own )
-‘gazillions’ industry respect when we turn it round .
- happy bank ( and to some degree I believe ‘banks’ are still people here in WA)


Is this support the miracle cure Gascoyne needs for its ‘doldrums’ at the perfect time?
It appears it owes its bankers $1.6 million next week plus there is also a final (final!) tenement payment of $4 million that needed to be paid in December quarter.( I didn’t check this ) plus whatever else ...

So even without whatever NRW required (if not for the loan) it was needing to dig deep when it’s already pretty much down to bedrock.
And the final nail in the coffin was probably losing 56 hours out of December -

*“Gold production for December (to 20 December) is 4,245 ounces. This performance is inclusive of an approx.
56 hour mill shutdown to replace remaining original mill grates and replace a split conveyer belt.”

On 12 hour days 56 hours is almost 5 full days (4.66)
On 24 hour days it’s about 2.3 days .
Assuming the 24 hour day operation, then in December they only had 17.6 days to the announcement and produced 4,245 ounces - an average of more than 45 ounces of gold a day ?
At $1800 an ounce that’s better than $81,000 income a day with improving operational strategies and graded anticipated.

Gascoyne is hedged for its loans at lower prices than that .
Possibly the review mentioned in the Christmas Eve announcement
(* here it is again)
“ The Company has made all interest payments required to date on schedule and continues to work closely with its Financiers National Australia Bank and Commonwealth Bank of Australia to review the facility repayment profile in advance of the next scheduled repayment on 31 March 2019.”
..is about temporarily taking advantage if higher gold prices ?


Which if true means the bank - like NRW - is working keenly to support Gascoyne !
(More reading between the lines here as well as a complete turn around in perspective ..... but in my -extremely variable- opinion it is good to look at both sides of a story )


In support of the refreshing perspective banks are lovable and just want to help, it turns out the bank did NOT benefit from the positive prices after September news of the Tanqueray find!
Well not CBA - It actually bought a million shares at 34c each on the day of the news - 19 September ( shares subsequently dropped to a low of .o81 cents!)