It looks a little pricey, but a 6 month bridging loan was always going to be on the high side.
The terms for me though are far less important than the phasing of the cashflow. I estimate they are going to have to pay out about USD$100k a month in interest and even this may/can be added to the loan as PIK.
The royalty payment, in terms of getting the project over the line, is almost irrelevant. It's only paid when they have actually produced the gold so it's not a cashflow issue and the actual gold price is regularly moving more than this anyway - and it's only 6 months.
The OID is added to the loan balance - so no cashflow implication for 6+ months.
....And if we are going to be generating in the region of US$18M a month the additional/high costs are not significant.
Good deal for both parties.
It looks a little pricey, but a 6 month bridging loan was always...
-
- There are more pages in this discussion • 51 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add KCN (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$1.62 |
Change
0.020(1.25%) |
Mkt cap ! $417.5M | |||
| Open | High | Low | Value | Volume |
| $1.61 | $1.66 | $1.59 | $939.6K | 581.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 7553 | $1.59 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.62 | 5378 | 2 |
View Market Depth
| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| KCN (ASX) Chart |