You don't get it do you tingles. It has clearly been stated in the previous announcement that pgi will have to capital raise 10m if mac bank is kept as the principle lender and no note deal can be executed. With 5m of the capital raise going to mac bank on the 31 march 2015 repayment. Theres only 1.5m in the bank and unfortunately the payment in 31 march 2015 doesn't give pgi enough time to save enough money towards the payment.
As for shareholder loans, the company simply doesn't have the money to repay them. What happens with them,im sure the company will update in the new year, as they where due 31 December 2015. As we don't know what agreement pgi made with the shareholder loans, its hard to tell what effect they will have. Maybe they will be like maq bank and agree to new terms, or maybe the shareholders will be aggressive and seek funds straight away as per there agreement. Who knows.
As for estimating the cashflow, its pretty clear now, with this third refinance from mac bank, that cashflow from operations has been revised down again to accumulate pgi to pay off its loans. Its a further blow to the wild predictions we had on HC only months ago. Pgi is profitable, the level of profitability people need to tone down, and come back to reality. Pgi will not have 100's of millions left after tailings ore has finished but a modest amount. Will that be enough? for the second projects?. Pgi has hinted this to investors, by saying in the last announcement, that the capital raise in march 30 2015, is for mac payment for 30 march, working capital and advancement of the second project.
The current announcement confirms what a good partner mac bank is to pgi. This is the third time they have refinanced the debt. And im sure if pgi needs to refinance in the future again, they will again. As for these note holders, they want to see months and months of production before they dip there feet in yes or no. Mac bank is the way to go. They are a major shareholder too. Don't need them selling if the note holders come in and cut there lunch. The share price is depressed enough. Hardly anybody apart from BJ is stepping up to the plate lately, the poor man cant carry the load himself. Paul, tingles, jumpstart and trish, you need to help out, the boss is showing the way
PGI Price at posting:
1.8¢ Sentiment: Buy Disclosure: Not Held
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