nice observing there @observing
Debt repayments agreed amended schedule from January of US$20.17M:-
31 March U$4M debt drops to U$16.19M
30 June $5M debt drops to U$11.19M
30 Sept $6M debt drops to U$5.19M
31 Dec $5.19M final and debt free
As they have more cash at bank they may decide to pay down earlier which kojak thinks they wont do. But I saw with AGO a large unexpected debt paydown of U$40M in Jan 2017 caused a 4 bagger runup in 1 month as the death card was taken off the table finally and the market was stunned and rerated it way higher.
The death card has never been on the TRY table and Investec lent U$100M 4 years ago, now debt is down to U$16.19M and dropping fast and Investec may want to extend the terms and slow this down as they will be repaid in full with no more interest by 31 December. We know lenders make money on loan interest and nothing on $0 debt.
If Investec want a deal and extend this to Dec 2019 at U$2M pQ say TRY will have an extra U$7M cash by 31 December and what would they do with it? Dividends, more great drilling results, diamond drill the underground mother lode, share buybacks?
I personally think get rid of the debt ASAP and then build the cash bullet/warchest/cash at bank and then Investec or any other lender will lend again in future for the next mine etc.
so the debt is now at a 5 year low of max U$16.19M and U$11.19M by 30 June unless they pay more down unexpectedly. I said they should do it and paydown another U$4M rather than keeping it at the bank and keep the record production going as that will really show that this is ready to do an SBM RSG SAR multibagger type runup which is very very long overdue for TRY.
Once market realises debt is fully controlled and being slashed like it did with AGO, and the cashflow is flowing strongly, then the animal spirits will run this hard.
TRY should be at 31c now equivalent to DRM on these blowout results. It has half the debt of DRM. 3-5 days to go.
Boom boom, the bullet is coming.
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