RE:RE:Expanding capacity of loan collateral, not mine ops. chonasis...i agree what you posted here. i've read that...just try to find out scientific explanation. why no BFS/DFS yet then came first that crusher. Which i don't like this "Mongolian Way". STGO hired DRA for Phase-II, a global consulting company. But what if DRA can't align processes with Mongolian way? Again "bottleneck" issue in a few days later?
Interesting, how much collateral STGO put in the bank to get $13.5 mil. loan? $27 mil. mine asset? Almost 70% of PPE book value. From Balance sheet PPE=$37.9 mill
P&L forex gain=$19k, then CF unrealized (gain)=$(91k), what's that? Any idea on that? Manipulating fin.numbers...And says we've positive cash $28.9 mill. including
"Restricted cash" .. Now do a little math...Cash C2=$28.9 - Restricted cash $12.5 = $13.4, can't cover even $25.7 mio. current debts. That loan from TDB bank is not exactly a normal business loan, it's more likely "Off-take" contract & Credit line. Q is, STGO paying interest for not used fund?
That's why i posted earlier "..now STGO only can get loan with high interest under tight control of lender"
On September 18, 2020, the Company entered into a loan agreement with the Trade and Development Bank of Mongolia (“TDB”) for 30 billion Mongolian Tugriks (US$10,510). The loan is financed by the Bank of Mongolia for a period of 24 months secured by a cash deposit held by TDB totaling 35.4 billion Mongolian Tugriks (US$12,455 as at March 31, 2021). The cash deposit is disclosed as restricted cash. Under the terms of the loan, the Company is required to sell all of gold produced throughout the financing period to TDB and maintain a 50% deposit of total budgeted environmental activities as security to fulfil its obligations of environment protection. The purpose of the loan is to provide financing for further expansion at the ATO project. The outstanding principal balance on the loan is subject to interest at a rate of 11% per annum, payable monthly. Repayment of the principal balance on the loan is required to be made in three equal tranches on September 18, 2021, March 18, 2022 and September 18, 2022.