plough,
I may be wrong but it is my understanding that once the the drawdown on loan is started (and it has) that IGE must continue till full $90m drandown.
From 12/7/19 release "Under the terms of this loan agreement, the funding schedule states that once the draw-down schedule commences, US$90 million must be drawn-down in regular bi-monthly instalments on the 7th and 22nd of each month. The initial 2 instalments scheduled are USD7.5 million and the subsequent 15 instalments are USD5 million each. That is USD90 million must be drawn-down over a 9-month period, averaging approximately USD10 million per month. The interest rate applicable is 8.5 %."
With update on 2/8/19 stating Full $90m will be drawn by May 2020.
With liabilities @ $46m (Aussie) 30 June 19, I am guessing not a lot of the $90m will be left by the time we are at 100t per day. If there is it would only be directed at other sites so Amsterdam does need to turn enough profit to service loans. Do your own back of the envelope calculations.
The €18m via Rabobank will provide a buffer and if all goes well they may be interested in taking on the SGC loan at a more competitive rate. With all that taken into consideration I think we are "Skating On Thin Ice".
IGE Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
