MD&A bloody brutal.....
i, and i assume many others were under the impression that permits and financing were to be done by year end.....NOT !!! OUTLOOK
The Company intends to continue to advance the development of the Marathon Project. Key milestones and areas of focus over the next twelve months will include the following:
•
Apply for permits critical to allow for construction to commence,
•
Advance project financing required to develop the Marathon Project,
•
Subject to financing, advance engineering and procurement,
•
Conduct an exploration program on the property, and
•
Subject to receiving the requisite permits, project financing (as discussed elsewhere in this MD&A), and formal Board approval, commence construction of the Project.
Advancing Detailed Engineering
The Company advanced the detailed engineering and procurement (“EP Services”) of the Marathon Project throughout 2022 and into 2023.
Late in the first quarter of 2023, the Company paused the EP Services pending increased visibility regarding the timing associated with the receipt of permits required for commencement of construction and project financing. The tailings dam designs, water infrastructure, on-site and off-site infrastructure, and process plant designs had been advanced to approximately
40% complete. Additional detailed engineering will be required on the plant to advance to construction.
Permitting Updates
All permits associated with the Project are advancing; the Company expects to have all of the necessary permits available
prior to Project financing being finalized.
Stream Financing
Wheaton will make ongoing payments for the gold and platinum ounces delivered equal to
18% of the spot prices (“Production Payment”) until the value of gold and platinum delivered less the Production Payment is equal to the upfront consideration of $240,000,000, at which point the Production Payment will increase to 22% of the spot price.
here's a curveball....
On the first anniversary date of the First Early Deposit (March 31, 2022), the Company had not met certain conditions precedent under the PMPA and will be subject to a Delay Payment of 250 ounces of gold per month until the conditions have been satisfied. The Delay balance is payable in gold deliveries from operations and the Company has an option to settle in cash.
250oz x i assume x 18% x 2000 pog = $90,000/mth
it's been 8 months so far..... $720,000...plus how many more months to come ????
i wonder if they had to do that pitiful .28 pp for $15 million to satisfy any of this
Senior Secured Facility
The potential US$400 million senior debt facility ($540 million) combined with the undrawn Wheaton Precious Metals Stream of $200 million, or a total of $740 million, represents a significant portion of the initial capital required to develop the Marathon Project. The Company is currently in discussions with the mandated senior lenders to determine an appropriate cost overrun facility and confirming debt capacity. Subject to completing these discussions to the satisfaction of all parties, this will be followed by credit committee approvals and then finalizing definitive documentation, together with arranging equipment leases and sourcing the balance of the capital required to fully finance construction. The project finance process is expected to take several months and is being run in parallel with the permitting approvals.
The Initial Capital cost considers a construction timeframe of approximately 24 months followed by commissioning and ramp-up to commercial production over a period of approximately six months.
in conclusion, all i can say in total disappointment is _____ _____ !