@ ~ 28:00 On the q2 call Jed the CEO said they spent money on post-mill equipment in the restart of the mine, but the mills themselves (there's three in a picture they included in the PR) will be replaced in order to get to their 2k/tpd target.
You have to wait for the mill expansion .. They will do a raise at some point. ZERO DEBT SO ZERO CHANCE OF BANKRUPTCY. figure 100 million shares outstanding at $5 to $7 copper by end of the decade. Stock will still 10x even if they double their share count .. The company needs capital .
Just noticed watching at around 18:00 that they have a requirement to get to 900 tpd mined for 30 consecutive days by October 31 2025 otherwise they need to repay the remaining of some agreement they made with Sprott. Probably doable, I think they're at ~600tpd from underground now but it is something to keep in mind. Pressure is on and all that.
@@katchum I just asked them on the conference call, they said they 'will acheive that within the fiscal (?) period of 2025'. No other details from what I hear on my recording.
Is it really fair to account for accretion and depreciation as expenses since these aren't real cash expenses? In accounting, an accretion expense is a periodic expense recognized when updating the present value of a balance sheet liability, which has arisen from a company's obligation to perform a duty in the future, and is being measured by using a discounted cash flows ("DCF") approach. Can't accretion and depreciation values be written off for tax purpose accounting to reduce taxes and therefore when you count the whole amount you're artificially inflating the true expense because in reality they would be getting tax credits for a percentage of these expenses? If you discount depreciation and accretion the company is already profitable is it not since these two expenses account for 2.6 million alone for this quarter?
Did you notice how last year they claimed no expenses for depreciation but this year they claimed $958,419? That's because it wouldn't have been worthwhile because they made no money. Now that they have a decent income stream they're claiming it for tax purposes. How does your analysis work out if we do reasonable assumptions for these expenses like a percentage discount on them?
Also accretion would go down over time as the Sprott stream agreement gets repaid that's why it was 2.2m last year and 1.6m this year. Maybe we should use a linear interpolation to reduce it over time going forward using these numbers? I think it's down to 30m now from 40m originally owed.
@@katchum Have you seen the comments on CEO about the 43-101 and grade deposits? What happens if we assume grade ramps up overtime and goes up to a conservative 2.5% by Q4 now that lower levels will be accessible that have grades between 2.5-3%? It looks like we should have already been in the higher grade deposits by now but the pump failure set the plan back a few months it looks like if I'm not mistaken.
With the Safi Silver spinout at any time and the additional shares granted to existing shareholders during that it almost seems like now is the ideal time to be a shareholder if we're about to hit higher grade deposits. If I remember correctly Jed has announced in the Atrium research interview today that the mill expansion will be paid for with debt similar to the pump failure where they pay it back in copper concentrate. With no talk of dilution currently, looks like a decent opportunity with share prices so low. I think I could possibly be too optimistic though so I'd rather ask the opinion of someone such as yourself that is more pessimistic/realistic in their views.
What do you think about latest Soma results?
Costs higher, but will improve when grades rise back. Buying opportunity.
thx for update
@ ~ 28:00 On the q2 call Jed the CEO said they spent money on post-mill equipment in the restart of the mine, but the mills themselves (there's three in a picture they included in the PR) will be replaced in order to get to their 2k/tpd target.
Yes, that'll cost some capex.
sold on 0.79 and on friday it closes on 0.70. Stock seems to definately getting a new valuation after this report.
You have to wait for the mill expansion .. They will do a raise at some point. ZERO DEBT SO ZERO CHANCE OF BANKRUPTCY. figure 100 million shares outstanding at $5 to $7 copper by end of the decade. Stock will still 10x even if they double their share count .. The company needs capital .
Yes, I'll wait on the sidelines until mill is expanded.
Just noticed watching at around 18:00 that they have a requirement to get to 900 tpd mined for 30 consecutive days by October 31 2025 otherwise they need to repay the remaining of some agreement they made with Sprott. Probably doable, I think they're at ~600tpd from underground now but it is something to keep in mind. Pressure is on and all that.
Yes, that will be difficult, so some debt could come into play.
@@katchum I just asked them on the conference call, they said they 'will acheive that within the fiscal (?) period of 2025'. No other details from what I hear on my recording.
@@thomasbayer1843 Does that $1,594,086 accretion expense go down significantly if that happens?
Is it really fair to account for accretion and depreciation as expenses since these aren't real cash expenses? In accounting, an accretion expense is a periodic expense recognized when updating the present value of a balance sheet liability, which has arisen from a company's obligation to perform a duty in the future, and is being measured by using a discounted cash flows ("DCF") approach. Can't accretion and depreciation values be written off for tax purpose accounting to reduce taxes and therefore when you count the whole amount you're artificially inflating the true expense because in reality they would be getting tax credits for a percentage of these expenses? If you discount depreciation and accretion the company is already profitable is it not since these two expenses account for 2.6 million alone for this quarter?
Did you notice how last year they claimed no expenses for depreciation but this year they claimed $958,419? That's because it wouldn't have been worthwhile because they made no money. Now that they have a decent income stream they're claiming it for tax purposes. How does your analysis work out if we do reasonable assumptions for these expenses like a percentage discount on them?
Also accretion would go down over time as the Sprott stream agreement gets repaid that's why it was 2.2m last year and 1.6m this year. Maybe we should use a linear interpolation to reduce it over time going forward using these numbers? I think it's down to 30m now from 40m originally owed.
@@SPJ4529 yes, maybe it shouldn't be added, but still they would be break even.
@@katchum Have you seen the comments on CEO about the 43-101 and grade deposits? What happens if we assume grade ramps up overtime and goes up to a conservative 2.5% by Q4 now that lower levels will be accessible that have grades between 2.5-3%? It looks like we should have already been in the higher grade deposits by now but the pump failure set the plan back a few months it looks like if I'm not mistaken.
With the Safi Silver spinout at any time and the additional shares granted to existing shareholders during that it almost seems like now is the ideal time to be a shareholder if we're about to hit higher grade deposits. If I remember correctly Jed has announced in the Atrium research interview today that the mill expansion will be paid for with debt similar to the pump failure where they pay it back in copper concentrate. With no talk of dilution currently, looks like a decent opportunity with share prices so low. I think I could possibly be too optimistic though so I'd rather ask the opinion of someone such as yourself that is more pessimistic/realistic in their views.