RE: $5m Loan2 Jun 2025 19:05
I can answer that , it’s called keeping liquidity for growth or problems. It provides optionality. Cash flow is king and debt isn’t a problem at that rate. You do not relinquish credit facilities.
Endevour mining just paid down 350 million debt last quarter and prob could be debt free if they wanted by Q3 easily but they pay a hefty dividend and kept a 500 million dollar facility and rolled it over.
Most companies carry debt it’s good for options if it’s within the earnings to debt ratios.
For instance endevour want to build another mine.
SRB might want to expand or grow or drill more.
Sorry to appear condescending but your question is very beginner ish , but I hope you can learn something.
I am not invested here but after Shanta sold or was robbed from me I could of got in at 36P
I think personally there are better plays out there than this , it’s a toddler and has very low production and limited on SP appreciation from here.
Very well done to those who bagged 200% on it.
I would not invest anything here it’s got limited appeal at this SP
But having said that all boats rise and this will rise with gold if it goes on to make a new high this month which it will.
But the growth potential has topped out