Of the total liabilities of ~~60m+ there is ~23m that relate to the streaming deal and the balance is straight out debt that needs to be repaid whether there is production or not.
My reading of the streaming deal is that it remains in place for the duration of mine life. Once the delivery hurdles are met (estimated to take four years), Quintanta move from getting a super unbelievably good discount on the product sold to them to merely and an unbelievably good discount on the product.
Prices and volumes to meet delivery hurdle (estimated first four years based on a maximum of 25% of production) after which time the prices increase by 50% for 12.5% of ongoing production
8,761,905 pounds of copper for 75cents per pound
22,452 ounces gold for USD290 per ounce
234,381 ounces silver for USD4 an ounce
3,395,238 pounds of Zinc for 37.5 cents per pound
7,338,095 pounds of lead for 37.5 cents per pound
Bill, maybe you can tell us how do you think the company is going to repay all the debt outside of Quintanta? do you really think they can sustain $1m a month debt repayment beyond Pearse open pit and still have monet left over to develop other deposits? If not, what are the options for the company? would another capital raise be the most likely outcome or do you think that creditors will extend payment dates and wish the company good fortune on its unfunded exploration and development program?
KBL Price at posting:
0.6¢ Sentiment: Sell Disclosure: Held
