Are any of you properly looking at the $100m of debt they now have at 10.5%?
From their quarterly they will burn through their cash this quarter and are then relying on the lenders to approve another $50m draw down so they will have funds but will then have $150m of debt ($16m per year in interest) I just can not see this as sustainable at all with production not pickin up drastically.
The company does not illustrate well what it's strategy is with all of this infrastructure build that you all talk about and just keeps increasing debt along they way to the point they are running out of funding lines and are being left with a huge debt position.
This is purely my view only and maybe I have missed something but I can only see a big capital raising as their only option at some point.
Really like the area just can't see it in RFE.
IMO and DYOR
RFE Price at posting:
22.0¢ Sentiment: None Disclosure: Not Held
