I see RES only have recourse to the $2.5 million US when the financing of the whole project goes ahead. They will have to do a capital raising as they announced that maybe by September the other lender would submit the documents required by the IDC. So the IDC will only lend up to $100 million Au and RES owes Noble $ 42 million US so far as the other $2.5 million does not form part of their debt until the mining loan is completed. That leaves $ 27 million US to develop the mine if the IDC signs tomorrow and what ever NOBLE decides to invest out of their share of the money owed to them. 1) The interest payments of 11% / annum are $4.5 million US/ annum.....on 42 million. 2) Will the IDC give RES (1billion Rands ) $69 million US knowing that over 2 year development of the mine only $19 million US will be used for the mine.($9 million interest to NOBLE. 3) NOBLE is currently valued at $100 million US on the stock market.... infact it lost $3.9 million US recently. 4) India is set to start moving away from thermal coal in the next couple of years. 5) Where are the other funds coming from to a art this mine.... What are RES waiting for ie $19 million US spend over the next 2 years from September? The project just doesn’t add up at this stage... you crunch the numbers for me. I’m interested go ahead.
RES Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
