Almonty Industries Inc T.AII

Loan

[QuarterDollar]

• The loan is $75M to be paid back over 6.25 years.
• With the WO3 plant, the loan will increase to $125M and based upon the payback time of the original loan, I expect the payback period to be extended to 10 years.
• The floating interest rate on the loan today is 4.75% which I will round up to 5% for simplicity, makes our first payment $12.5M + $6M Interest. 
• Because interest rates will continue to increase over the next 2.5 years (i.e. Loan Grace Period), lets say our first loan repayment including principle is $20M.
• As the principal is reduced with each repayment, the amount to be paid back will be reduced by $500K each year over the 10 year period.
• What I find intriguing on page 19 of the Investor Presentation, is that Free Cash Flow is approximately $50M per year, AFTER TAX & DEBT SERVICE.
• This chart did not take into account the additional $50M loan plus interest. But for the purpose of my calculations, I will asume the profit  (i.e. profit made from the WO3 plant including the 25% increased production from recycling),  and the anual loan repayment (pricipal plus interest) will cancel each other out.
• Furthermore, because of the push of the SK Gov't and industry, we will be at full capacity one year earlier than what is stated on the chart.
• This means, after servicing debt and taxes, Almonty will have approximately $350M in the bank.
• Also, after the loan is repaid, the profit should jump by another $12.5M per year.
• Well smart decisions have to be made with that money. I am sure some of that will be allocated to build out the Moly Mine.  But more importantly, we need to find a way to reduce investment costs of the NA mine.