from FY22 Financial Statements page 104 - Liquidity Risk
In addition, the Company was obligated under its corporate revolving credit and term loan facility to maintain liquidity and satisfy covenant ratio tests on a historical cash flow basis. These ratios were in compliance during the year ended December 31, 2022, and December 31, 2021. If the Company breaches a covenant in its Financing Agreements, this would be an event of default which, if un-addressed, would entitle the lenders to make the related borrowings immediately due and payable and if made immediately due and payable all other borrowings would also be due and payable.
In respect of discussions with the GOP, the Company has expressed its earnest desire to resolve all outstanding issues and continues to engage with the Government with a view to concluding a reasonable and durable arrangement regarding the long-term future of Cobre Panam. It is hoped that outstanding matters are resolved in the short term. A period of care and maintenance or a temporary shutdown at Cobre Panam would have a negative impact on the Company’s estimated EBITDA but the Company would still expect to remain in compliance with financial covenants over the next 12 months. An extended full shutdown to the end of the year may increase the risk of the Company’s ability to be in compliance with all existing facility covenants.