Here is the term sheet.
A couple of observations.
1. Oaktree coming in for $8.75m. That's going to pay down the Spanish debt by 5m euro. You might have noticed in the Saloro credit facility extension it only covered 20m euro rather than 25m. This is why. This will take Oaktree to nearly 20% which is their limit, but it's a big vote of confidence.
2. while any cap raise can be disappointing, it was needed to a) improve the balance sheet b) get the 3rd order in Spain to lift production and c) get Mt Carbine to the higher grade material.
3. The tungsten price is now over $400mtu and rising, which is given a nice boost. The offtake agreement signed are at market prices.
4. Saloro already cashflow positive, just need MC to get to the higher grade.
5. The price is below where they wanted it, but the sell down last week forced them to set the price here.
6. I had a look at EQR and Almonty balance sheet. While we need our balance sheet improved, Almontys in worse position.
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| Summary |
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|---|
| 1 |
| EQR | AII |
|---|
| 2 |
| thousands | thousands |
|---|
| 3 | Current Assets | 25291 | 30202 |
|---|
| 4 | Non Current Assets | 162708 | 247939 |
|---|
| 5 | TOTAL ASSETS | 187999 | 278141 |
|---|
| 6 |
|
|
|
|---|
| 7 | Current Liab | 110576 | 47802 |
|---|
| 8 | Non Current Liab | 27471 | 213137 |
|---|
| 9 | TOTAL LIAB | 138047 | 260939 |
|---|
| 10 |
|
|
|
|---|
| 11 | Asset-Liab | 49952 | 17202 |
|---|
(20min delay)