Ann: Cyprium Metals Update, page-85

On the Metals X convertible notes. It appears I have misunderstood them from the beginning. I had thought the interest (4%pa) was being capitalised on a compounding basis. I didn't realise we are actually paying the interest in cash annually. With this being the case the interest payment of $1,440,000 is due this month! Thus the need for the loan.

They way the explanation of the convertible notes is stated in both the original acquisition announcement of 10 February 2021 and the last annual report confused me. The interest terms are described as an annual coupon of 4% to be capitalised and paid annually in cash unless Metals X elect to receive shares as payment. Now I understand this as saying that if Metals X elects to be paid in shares the interest is capitalised until the conversion date otherwise it is must be paid in cash. In researching this post I have answered my own question!

OK, looking at the half year report (to 30 June '22) I can see that there is an expense item of $1,440,000 for Interest on convertible notes that would have been due in March '22. Why our financial end of year is Dec 31 is another matter.

ASX Release 10/2/21 Agreement for Sale of Copper Assets (released by Metals X)



2022 Annual Report