with the cash on hand (including the credits due), CUU can easily wait until at least 2017 before getting worried about cash; by that time the macro picture should be a lot better than now. Then we have the RE for VanDyke coming out in the next couple of weeks or so, then followed shortly by PEA. Once that is done (and results are as expected), the VanDyke project will go for sale to one of the majors in the neighbourhood. Even at a fire sale price, it wll bring enough funds making consolidation or "being stareved to death" a non-issue
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I agree with you we do have enough cash and credits to easily last for several years.
The question though, is what does management plan to do with the cash and credits? They haven't been conserving cash to date as a lot of spending has been done this last 18 months or so.
I haven't seen any indication in the NRs that they have any concern with funding going forward at all. All I have seen is more spending (Van Dyke RE & PEA, Titan survey for Sombrerro Butte, and Carmax will need more work) and no explanation how they expect pay for it. Just because a poster on an annonymous forum says the plan to conserve and have funding till 2017, doesn't mean it is the plan. We need it from the company and it is a reasonable expectation IMHO.
So is it a stretch to be concerned about finacing and cash preservation? If the plan is to spin-off or EE giving a shareholder loan, let us know. If they plan to do another PP, at least give the shareholders a head's up on that.
Uncertainty affects SP. Management could be a lot more clear about their plans for funding the future. It is irresponsible to not be clear with the market on this topic. I don't think call the office applies here.
I would like to encourage the company to share the plans they have for our investment. There is no reason not to, and many reasons to clarify (including better SP).
If the market isn't going to like what they have planned, then it may make sense to be so cryptic. I hope that is not the case.
Considering what has happened to our SP over the last 3 years, they owe us some clarity if nothing else. Blackout wouldn't apply as it is future funding for CF and unrelated to the JV.
