Rye Patch Gold (RPM.V) is working hard to become Nevada’s next commercial gold producer after securing funding for four additional (second hand) haul trucks. This funding wasn’t cheap as Caterpillar is selling the four trucks for a 20% down payment whilst the remaining US$2.94M will have to be repaid in 48 monthly installments at an average interest rate of 6.95%. This second hand equipment will arrive on site in the fourth quarter of this year, which will provide a meaningful boost to the amount of tonnes placed on the leach pad.
In another publication on Streetwise Reports, a contributor mentioned Rye Patch Gold is ‘flush with cash’. Whilst it indeed does have C$22M in cash on its balance sheet, the company actually had a negative working capital position of –C$8.1M (the ‘flush with cash’ statement was made before the financials were released). This means the current cash and inventory levels (as of June 30, obviously) were insufficient to cover the current liabilities. It’s very important for Rye Patch to get the cash flowing as soon as possible to convert this into a positive working capital position. Having C$22M is pretty meaningless if it doesn’t cover your near-term debt.
Go to Rye Patch Gold’s website
The author has a long position in Rye Patch Gold. Please read the disclaimer
