Game changerThis is a very good outcome for share holders. Loans with no dilution to get the company through the rough patch is exactly what was needed. These recapitalization deals often involve massive dilution. Somehow the company managed to avoid that.
The only thing that would have made the deal better would have been a reduction in treatment costs. The problem is that a contract is a contract, and the bone headed management signed up for the highest treatment costs in history. Allowing the company to eat the treatment costs with a loan is the best way to spread out the cost. It will come down next year when the treatment cost contract is up for renewal.
Everything depends on the price of zinc now. The company should survive with zinc above $1.05. They might actually be profitable with zinc above $1.15.