Hi Leehardcastle: we will have to wait for the next update to see where we are but I will stand by my comments for the time being and not top up until we get the Interest rate down to 7% or the loan is renegotiated.
I also want to see the mine life extended in the short term.
What annoys me is because we are so undervalued we are losing some great British companies to overseas investors who buy them up at what are considered very cheap businesses compared to others around the world.
FTSE use to be the leader of the pack. I feel we have aged and now a drag. Such a shame.
I agree it's very undervalued but I cannot see the rerate really starting until they start on this 15% interest. They havent started it yet and its compounding!The principal plus capitalised interest balance owing by the Group under the Facility Agreement as at 30 June 2021 was US$42,410,937 (30 June 2020: US$70,818,508).So we should get this paid off in let's say 2 years which is great. But in the meantime we have: The New Mezzanine Facility interest rate will initially be 15% per annum, reducing to 7% per annum once the New Senior Debt has been fully repaid. The principal and accrued interest/fees balance owing by the Company to the Mezzanine Lenders as at 30 June 2021 was US$73,314,888 (30 June 2020: US$62,014,689).So this debt will have gone to:June 2022 84,320,000June 2023 97,000,000So we would have paid over 40mil of debt but had over 25m added to our debt due to compound Interest rates from the MezzanineThat's assuming the gold price stays within its range and we make progress with the next phase.I get they probably had little option at the time and had to take what they had on offer. I was just wondering whether I may have missed anything about whether these loans can likely be renegotiated now they are proving their gold production. It's a huge amount of work they are doing just to pay off interest and all whilst us shareholders get very little reward apart from some glimmer of hope in a few years time.Whilst I am bullish in the long term I just cannot see any material change in the SP until we start on the larger Mezzanine debt. Hence i have got a position but will not build until more until closer to the debt payment reducing.If i have got my sums wrong or am wrong in my assumption please let me know :)
I have had a holding now for some time. I will only top up once we start to pay off the Mezzanine loan. It pains me to watch as the interest is adding so much value to the loan each year. The repayments we are making is providing some security buts it's coming down to slowly and it's amazing how many millions we would have paid out in interest alone over the next few years
Does anyone foresee this arrangement or the loan facility being renegotiated now we have had a good year of showing our gold productions ?
ST - Agree with most of your points but really hope they stay away from further acquisitions in the near future. They need to concentrate on this one asset, get the numbers to prove they can do the job. The 5 million my guess will only keep them going for so long and from what I can tell they are not hitting their oz yet and have a huge wage bill.
Would we prefer them to come tapping the Share holders for 5m usd at 1pps or come for 5m when they have shown their worth and got the SP to 5p or more?
Some good points raised there Tovers. I do think next results will be very upbeat. It is a shame about the debt they need to repay as I thought we would be given clarity on this as it's what is holding us back.
I'm not worried at all, with many other shares recovering well now from the pandemic I now have time to move more shares across to CARD for the inevitable re rate
Dont forget the results are to end of July which was a very different world to what we live in now even though it's only a few mo ths back. I personally think they can see the tills ringing at full capacity now and can see the repayment can be covered otherwise they would have just issued more shares and be done with it.