RE: RE: RE: RE: We Need A New Leader geezer, Furple, stack,
Thanks for all of your comments. I think Largo 'could' be a great company but these unending delays and bridge loans DO put us in jeopardy. The deeper we get into debt without the funding of that loan the greater the danger and the less room we have to maneuver. For example, this latest loan....
"The principal under the Bridge Loan shall incur interest at a rate of CDI+4.65% per year1 and shall mature on June 30, 2012."
It is due June 30th. That is a VERY short term loan. What if we don't have the underlying loan funded by then? Then we suck yet more wind and I'm sure the bankers have tied up every last asset. I guess my grouse is - when you commit to a loan [Arias et al] what the heck takes THIS long to put it together. All I can see that has delayed it [since, theoretically all of the major investors are agreed to the deal] is the expansion of Maracas ore body. This is NOT complicated - unless they choose to make it so. Just a thought. I want this deal to work too but the more early money we borrow works against us in negotiating the loan - not that there should be anything to negotiate but there seems to be... :/
My view of Northern Dancer is that it IS huge but low grade. Also, virtually no chance to get a roasting facility approved so we will only produce ore or concentrate. Which is to say we will not be able to produce either tungsten or molybdenum as, for example, Thompson Creek. That's a huge disadvantage.
The crown jewel for Largo - IF IT PANS OUT - is Campo Alegre. It's [supposedly] huge and can be the real money maker for Largo. That said, they were supposed to be drilling yet it appears to be delays for the foreseeable future. I would put little effort into Northern Dancer other than to find a JV partner and far more into proving up Campo Alegre.
Again, hate to be a contrarian, but this loan has taken FAR too long to put to bed.