Rubicon Minerals Corp. (USA) (NYSE:RBY) Gains on the Short-Term Gold Momentum
[[tagnumber 0]]Rubicon Minerals Corp. (USA) (NYSE:RBY) stock climbed above the 10–day moving average this week and it looks like it could gain more on the short–term appreciation of gold prices. A longer term uptrend looks very unlikely though as the company has no commercial production yet. About two weeks ago, it issued an update on its project in Ontario which got no attention from traders at all.[[tagnumber 1]][[tagnumber 2]] [[tagnumber 0]]RBY closed with a 3.92% decline at $0.763 yesterday which was a pullback after three consecutive trading sessions of appreciation. The trading volume was much lower than usual and since technical indicators were totally unaffected the chart still looks bullish for today.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On August 20, RBY released an update on its Phoenix Gold Project in Red Lake, Ontario. The report claims mills commissioning had been completed and mill recoveries exceeded expectations, yet it also hints at some delays due to “start–up challenges” like fall of ground in the mine and some complications in the haulage equipment. According to the management, the additional works to solve these issues should be finished in the next months, and commercial production should begin in the first quarter of next year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]][[tagnumber 12]][[tagnumber 2]] [[tagnumber 0]]The company also claims it has sufficient working capital of $50 million, yet that came at the price of future dilution for RBY shareholders. In May, RBY signed a secured loan facility with a pledge on all of the company‘s existing assets. In connection with the loan, RBY issued 10,000,000 common share purchase warrants with an exercise price of $1.715 each.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]RBY also has a Gold Stream Facility under which it has received a deposit in advance that adds to its long–term liabilities, and obligates it sell part of the gold production to the creditor. Although RBY market cap looks low currently, the share price could still tumble even more on the lasting bearish trend for gold.[[tagnumber 2]] [[tagnumber 11]] [[tagnumber 2]]
