RE:RE:RE:A debt free News Releases
Energy Fuels Announces Partial Cash Redemption of Floating Rate Convertible Unsecured Subordinated Debentures -
https://www.energyfuels.com/2020-06-11-Energy-Fuels-Announces-Partial-Cash-Redemption-of-Floating-Rate-Convertible-Unsecured-Subordinated-Debentures -
https://www.energyfuels.com/2020-06-11-Energy-Fuels-Announces-Partial-Cash-Redemption-of-Floating-Rate-Convertible-Unsecured-Subordinated-Debentures -
Deleveraging its balance sheet -
In an attempt to deleverage its balance sheet, the U.S. based uranium and vanadium
producer (and potentially, rare earth elements) announced it will redeem half of its
convertible debenture (C$20.8 M, US$14.8 M) on July 14.
The remainder is due at the end of December 2020.
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Since the debt is quoted in Canadian dollars, the company decided to take advantage of
the favorable exchange rate while avoiding US$350,000 in future interest payments, which
would have drained its cash position of US$23 million.
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The plan is to avoid taking on any more debt in the current market environment until a
clear plan to positive cash flow is developed.
The inventories of uranium (0.5 Mlbs of U3O8) and vanadium (1.6 Mlbs of V2O), valued at ~US$24 million at the end of March, will enable the company to act swiftly if there are any sudden changes in the market.
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Acknowledgment:
Exploration Insights Newsletter - Joe Mazumdar & Brent Cook - 06/14/2020
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RJ