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Not too good to be true...Bob Moriarty I did a piece on Rio Alto Mining (RIO) back in February. The central issue then was just how they financed their gold mine in Peru. They needed $30 million and had $5 million. It was my hope that they would do some sort of gold forward sale. Today they announced a $25 million gold forward sale. Rio will be in production late this year. With no dilution. It doesn't get any better than that. Go back and reread what I wrote in February. This is how a mining company should be run. The stock was $.44 then. It's $.86 as I write. It's going higher. These guys are going to have a 100,000-ounce a year gold mine for as close to nothing as you get. They pay for equipment and a heap leach pad out of the $30 million. $25 million of that comes from the gold sale. They produce 250,000 ounces of gold over the next three years and repay about 13,000 ounces a year out of production. Then they pay Iamgold their $47.55 million out of cash flow. How sweet it is. As always, we don't share in your profit so we don't share in your losses. I'd encourage you to go to their website and follow the story. Please take some responsibility for your own life and finances and do your own due diligence. We are biased, we own shares and they are an advertiser.
Bob Moriarty 321gold Ltd |
