south africa's coal demand and supply trends -, page-12

Mihal what is the structure of the hedging deal? Hairy has asked this many times, can it be taken in one lump or is it taken over the life of the project (ten years) . What is the interest rate ? If is over ten years then lets lOok at some rough calculations. 664,550 divided by 10 = 64,055 . 64,055 tonnes by your quoted margin of $67 =$4.5 m. What is the interest rate? http://www.resbank.co.za/Research/Rates/Pages/CurrentMarketRates.asp.
If we use the best capital rate from the above link of 8.5% then that's $35 million x 8.5% we arrive at an interest only payment of $2.95 million. That's assuming they received the best rate . Add a percent to that and you're up $3.25 million without even having touched the principle. That may not seem a lot but given ability of this lot to spend this could become an issue. Also, interest rates may ride in that ten year period ( as granted, coal prices may too) . Isn't the overall facility for $60 odd million? That may not seem a lot but given ability of this lot to spend this could become an issue.