Costs are running at about $5m per month, despite the forecast...

Costs are running at about $5m per month, despite the forecast reductions in cost per Lb, I believe this means this cost staying about the same, but grade and recovery rates improving so you get more Lbs for no more $. Based on the statement that revenues will be in excess of $9m from Sep, $4m per month EBITDA or $48m per year would appear to be the stredy state we are ramping up to. The average interest on the Debt is around 3% + US Libor so say $5m per year and that leaves $43m. They still have a fair amount of tax credt, but eventually they will have to pay tax as well. Overall the company is currently trading on a FWD P/E of less than 2. As the interest payments are relatively small, debt repayment through conversion and new share issue won't do much to increase profit, so full dilution (note conversion plus new issue to keep Jinchuan at 50%) would reduce EPS to about a third of what it would have been in all future years.

I do a lot of small company investing and it always breaks my heart when they have no choice but to dilute to pay off debt (they achieve a positive cash flow but interest and repayment requirements leave them nothing to grow the business with). Albidon do have a choice, provided Jinchuan will wait for the debt to be repaid in return for Albidon, in which they own 50%, being a much stronger position in the future to do mergers and acquitions, which is what the say they want to do. With what the have in the bank paying off the notes, they could pay off the rest of the debt at $20m per year over the next 5 years and still have cash to spare to extend Enterprise and bring Voyager online (these should not need much capital) they would probably need to raise capital for Songea, but the dilutive effect of this would be a lot less if done at a share price that reflected the true value of the company rather than a bombed out price due to all the previous dilution.