Discussion with Ewan Downie | I-80 Gold Corp (NYSE:IAUX)
ฝัง
- เผยแพร่เมื่อ 31 พ.ค. 2024
- Ewan Downie of Nevada focused gold project developer and producer I-80 Gold Corp. introduces the company. Ewan talks his experience in the business, his view of the market, company focus on developing and increasing production of gold at its 3 projects in Nevada, company owned processing facilities and toll milling arrangement with Nevada Gold Mines (Newmont-Barrick), exploration work to expand & grow resources, goal to become a mid-tier producer over the next 5 years with 400,000 to 500,000 ounces Au Eq. production, and more. #Gold #Stock #Investing #Mining #Nevada #IAUX #I80 #Downie #Energy #Exploration #Producer #Silver
Learn more about I-80 Gold Corp: www.i80gold.com
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Record Date: 11MAR2024
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Such a professional interview. Thanks!
I wonder why the CEO just sold 130k of shares in his beloved company around the time of this interview.
lol he saw the warrant for 100 million coming in, at 1.65
Thank you for the probing questions.... especially the production steps toward that 4 to 500,000 au eq oz. M
Thanks for giving us the shaft this morning. I sold out quickly pre market luckily. Major dilution at all time stock price lows when gold is at all time highs??
No doubt , it was a warrant , but you’re right! Gold stocks should be going up not down when gold is at record prices!
By the way, how do you sell pre market?
@@justfedup Whichever platform you trade on should give you a premarket option when you go to buy or sell before 930. Usually opens at 7 am
OK I'm going to make a STAB at the Mystery Equity Partner that is suppose to be announced at the end of April..... McEwen Mining
what makes u think that?
I hear most analysts saying I-80 was a spin out from Equinox which seems odd. A large shareholder maybe but not a founder.
Investors need to be aware that I-80 carries a LOT of long term convertible debt that pays interest at 8% in shares issued at a discount. The debt holders short the stock before payments and then cover with the newly issued shares. That acts as a permanent short on this stock. The stock has literally lost 50% over the past year (while gold has moved to all time highs) and shareholders who bought into the story are down substantially. This is a story that could end well or could end badly. That remains to be seen.
When you say a LOT, can you share how much that is? Also if you're arguing that this movement is manipulated by shorts, then isn't that actually a positive for anyone that wants to load up? They aren't shorting because it's justified for the typical reason you go short on a stock, but rather because they're just taking advantage of the convertible debt like you say. That doesn't hurt the story since I-80 isn't currently looking to the equity markets for funding.
@@mniay The convertible debt is a cap on the upside since it is in the money ~$2.65. Plus the ongoing shares issued as interest payments at a much lower price (90% of the current price) keep putting downward pressure on the stock. Investors keep scratching their head, saying why does this stock keep going down (more than 50% over the past year) while gold has constantly made new all-time highs? Well, now you know why.
I looked at the financial statements.
In late '23 IAU issued $65m of 4 year convertible debt, carrying an 8% interest rate, payable at the .investors' option in either cash or shares, with shares valued at the current market price. There is no mention of a discount to market price. At 8% interest, IAU would have an annual interest expense of $5.2m. Maximum dilution would be $1.3m/quarter if all the interest is paid in shares. So some dilution, but not overly onerous. But, given the declining share price trend, why would investors take shares, not case cash, or am I missing something?
@@klupberger "The principal amount (the "Principal Amount") of the Convertible Debentures may be converted into common shares of the Company ("Common Shares") at a conversion price of US$3.38 per share (the "Conversion Price"). The Company shall have the option but not the obligation to pay interest in common shares at its own discretion, subject to the approval of the Toronto Stock Exchange ("TSX"). If the Company decides to pay interest in common shares, then it will be priced at the greater of (i) 90% of the average closing price of the Company's common shares as measured in U.S. dollars on the NYSE American exchange during the ten (10) business days leading up to the interest payment, or (ii) the lowest price permitted by the TSX. The Principal Amount of the Convertible Debentures outstanding from time to time along with the accrued interest shall be due and payable upon the Maturity Date."
FYI this is not my analysis. It's the analysis of the guy who shorted the stock last year when it was at the highs. At that time it was being pumped on Seeking Alpha as a Buy. This guy said the share structure encouraged short selling and was a disaster for long term investors. Since that time the stock has lost over 50% of its value. Who objectively was correct? BTW I am a bag holder. IAUX is my second largest holding. However, I'm not going to willfully blind myself to what is going on here. There were two basic theses and the bear got paid, whereas we are all standing around wondering WTF happened.