RE:RE:RE:RE:You got to love the IrishWell they must have CAD$40m+ on hand today (net) after those stellar sales in Q3 and Q4.
At a combined production of 6.4-6.8 mCTS this year, their share will produce revenues well north of USD$300- so say CAD380m
Cost to run the mine CAD200m albeit CAD130 in the first half due to weather etc
leaves a CAD$180M to work with
Some exploration costs in Feb CAD$10m (lets hope they find even more Kimberlite on Kennady.
Reclamation costs CAD$20m
Bond Interest Payments CAD$12m due in June and again in Dec
Still well in excess of CAD$100m this year
Add on Current balances you are at minimum CAD$140M
Which would leave a refinance of USD200m and lots of Working capital left at year end. A successful FEB exploration/drilling on Kennady in February puts security for any lender even further beyond doubt .
Now you can repay a USD200m facility in full by 2025 and still have probably another 20 years life of the mine in GK. Id say it would be a real pity MPVD are not running a beauthy parade of finance providers at the moment. The fundamentals changed 6/9 months ago and that cant be denied. This allied to $Billions worth of diamonds that can now be commercailly extracted for a serious premium should make this an attractive lending opportunity.
Lets see what transpires ....but does'nt seem to be any short term cash requirement based on what will be generated in the next 6 months and refinancing a USD$200m facility on an underlying asset base on $billiuons and an Adjustyed EBITDA run rate of CAD$180 shouldbe be a big ask in a rational world.
Just look at the rough diamond index(10 year high) and where its heading - yes this stock is tightly held and illiquid but at some stage the mnarket has to wake up to this.
Excuse any typos its late- good luck to all shareholders the good days are a mere Quarter away and then the issue will be counting the money not worrying how much is to be repaid.