Lenders need certain guarantees and assurances before loaning money so as to protect their investment. These typically include imposing liquidity restrictions and bank covenants on the borrower. A typical bank covenant is maintaining a net debt:ebitda ratio of say below 3.0x (will differ between lender).
MLX made an EBITDA of -$15.3m for the half year ending dec 2018 (renison +$0.7m, Nifty-$12.4m, Corp -$3.6m). Now yes they’ve improved operating conditions at their mines but I have my doubts on whether they can spin a positive ebitda (or cash flow) with prices coming off and therefore provide the necessary assurances to lenders. I think there’s a strong chance of a CR because of this (or Nifty places on C&M)
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