ProShares Short SmallCap600 T.SBB

Primary Symbol: SBB

The investment seeks daily investment results that correspond to the inverse (-1x) of the daily performance of the S&P SmallCap 600 Index. The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the funds investment objective. The index is a measure of small-cap company U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 600 U.S. operating companies selected through a process that factors in criteria such as liquidity, price, market capitalization, financial viability and public float. The fund is non-diversified.

ARCA:SBB - Post by User

ProShares Short SmallCap600

<< Previous

Bullboard Posts

Next >>

Post by Galvanizeron Mar 10, 2023 6:46pm

120 Views

Post# 35331975

Sabina Financing Issues

It appears that the Wheaton and Orion financing is extremely expensive / onerous. Note 13 from the September 2022 financial statements (see below) has some pretty generous financing repayment terms using gold-in-kind payments to Wheaton and Orion.

What was the general consensus / feedback on these arrangements?

13. Construction financing obligations
Stream Arrangement - Wheaton
• Applies only to the Goose property and not to any other properties on Back River Gold district;
• US$125 million upfront payment (the “Deposit”) for 4.15% of the gold production from the Project dropping to 2.15% after delivery of 130,000 ounces and dropping to 1.5% after delivery of 200,000 ounces;
• The Deposit is to be paid in four equal installments of US$31.25 million during construction, based on the remaining capital to be spent prior to the senior debt facility and the gold prepay facility being drawn; and
• Wheaton will make ongoing payments equal to 18% of the spot gold price, until the Deposit has been reduced to zero, thereafter increasing to 22% of the spot gold price upon deliver

Goose Project only
US$125,000,000 financing from Wheaton
200,000 ounces from Sabina at $1,750 (estimate) = $350,000,000 to Wheaton
Plus 1.5% of gold production after delivery 200,000 ounces

Credit Facility – Orion
US$75 million gold prepay facility;
o To be funded to two equal tranches of US$37.5 million and available subsequent to the Stream Arrangement being drawn; and
o Delivery period will commence September 30, 2025 for a total of 15 quarters at 7,250 oz of refined gold per quarter