That makes their current interest rate at around 3.1%. With helicopter Ben undertaking QE infinity, it looks like USD rates may stay low for quite a while. I was worried that GBG would have a problem covering interest costs but with a 2.5% margin, interest on the $1816 loan works out be less that $ 60 million a year. That makes GBG profitable even under the worse case of $ 85 per ton scenario (GBG $ 105 per $ 20 premium) according to my calculations. Under current pricing scenario, it seems to be a screaming buy especially now the milling plant is performing to expectations, and the final finance facility has been approved. Seems to me that a lot of risk has been taken out of the picture!
GBG Price at posting:
31.0¢ Sentiment: LT Buy Disclosure: Held
