Yep we should get away with only small equity raise as part of the funding package.
Importantly, having the IFC (subsidiary of the World Bank) on the register and as as long term supporter for the company may play out very well. The IFC may offer a portion of the debt package at very low interest rates.
The other card that may finally play out is the announcement of a TSX listing. GRY have been progressing this for a fair while now. This could have a very positive impact on the share price on mulitiple fronts. Firstly, NEW and existing North American and Canadian instos will want a piece of the action as part of the TSX share issue/equity raise as all will know that this is the last chance to get equity in GRY as part of GRY's Banfora funding package. The added bonus being that GRY should then be valued at higher mulitples in accordance with TSX developers/producers.
Only speculating but the total funding package may look something like:
$25m TSX equity listing $25m ASX cap raising/SPP combo $40m GRY cash (from $65m current bank balance) $20m IFC (World bank) low interest loan $120m Debt funding (Combo of non-traditionl/traditional)
$230m would cover some unexpected cost overrun and contingency. However GRY have stated since the BFS that they expect the development cost to be less by the time the build is complete due to falling demand/prices for major CAPEX equipment.
A limited 'equity raise' of $50m or so would be pretty good in the scheme of things. Let's hope GRY keep it to around that level or less.
Interesting SP action today around 34.5c. And not much Bot action for a change. I believe most index weighted funds would have already adjusted their positions prior to Index changes on Mar 15th. They have had plenty of notice. So GRY exiting the ASX200 on Mar 15th should a minimal if no effect on the SP.
Wouldn't surprise to see GRY move higher soon to high 30's. Need some clear air!!
GRY Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
