Hi e350, I'm over the moon with this deal. So much so I purchased a few WAF on open yesterday. An 11% interest rate sounds daunting but Sanbrado and Kiaka cashflow combined after Kiaka ramp up should make very short work of their debt burden.
The best parts of the deal were:
- 265 million debt which was down 35 million from what was originally needed. - I expected potential credit card interest rates with the political turmoil in BF so 11% is an amazing outcome. - A local bank taking the debt on board gives WAF more political sway in BF. - Sprott lending cash adds to the confidence levels as they know WAF and BF inside out. - Repayment schedule starts 2 years after drawdown. - Early payments can be made 3 years after drawdown. - No hedge required.
Not so good:
- PPA payable to Sprott on first 1.5 million oz produced adds an extra cost of debt burden. At least WAF have a buyout option available for this royalty payment. 1,500,000oz * (USD$12.44/AUD$18.80 per oz) = AUD$28,200,000
WAF Price at posting:
86.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)