Ann: Non-Renounceable Offer - Extension of Close Date, page-15

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Hiddenvalue

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13/05/21

14:18

Post #: 53152829
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Originally posted by GravityWaves: ↑

Well @Hiddenvalue, I'd say funding is looking a bit less sketchy now that Mercucia have given credit approval for US$42m at an interest rate of 9.5% & 6 month grace period before repayments commence.

Based on WMX's production commitments to Polymetal, Trafigura, as well as future loan repayments & ounces hedged with Mercuria, I'd say they'll probably need to deliver at the very top end (or exceed) their production expectations of 120koz p.a...

Polymetal Contract:
The greaterof: (i) 70% of sulphide gold concentrate produced from Stage 1 or (ii) 122.5 ktof concentrates containing at least 195k oz gold
Grade ofconcentrate : 195000 oz / 122,500 t = 1.59 oz / t
195,000 oz /3 years
65k oz/yr

Tafigura Contract:
52,500 t ofgold concentrate @ 1.59 oz /t
52,500 t /1.59oz = 33.02k oz (over 3 years)
11k oz/yr

Mercuria US$42m gold swap + interest:
4 year repayment term
POG $2250 /oz (reasonable guesstimate)
6.3k oz/yr

Mercuria 4yr Gold Hedge
160,000 oz (over 4 years)
40k oz/yr
--------------------------
Approx. 122k oz/yr needed to service production contracts.

Now, WMX haven't had the best record for delivering anywhere close to their production expectations during the past (5) years of mining oxides, so it's a bit difficult to imagine they'll be declaring 120,000oz of production for the first 12 months of mining & processing refractory ores. However, I'll make sure to post a congratulatory comment (accompanied with party whistle sound effects) if they do.

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@GravityWaves

i have reviewed the announcement and I could not see any mention of a gold swap in tranche 2.
Mercuria US$42m gold swap + interest:
4 year repayment term
POG $2250 /oz (reasonable guesstimate)
6.3k oz/yr

Where did you come up with the gold swap in tranche 2? It seems to be just an interest loan backed by a hedging commitment. I think this is a great deal. I have purchased on market and will buy more with the rights,

I have a feeling this is being played for instos to take up shortfall. This is way to cheap now!!!
WMX Price at posting: 99.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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