TVI
Reducing the debt by 3 mil saves TVI $690,000/yr in Int etc... TVI by taking $3mil and putting it on their debt in essence has just made 23% on that money/yr of loan life(so if the loan is for 5yrs they have just saved over $3.4 mil in Int) now that is a nice return and that money can be used for some development.... It is never a bad decision to pay down debt in business or in your own household and you always pick the debt that has the highest int rate... In my opinion their is not to many investments TVI could have made that would of give them a 23% return.
If you read the news about the powerline they will see a 40% savings which is very good( I work for a small Company like TVI and our hydro bill/yr is $1.2mil and Canada has the cheapest hydro around) So they will save a good chunk of money we should see the operation cost drop once installed..... The other reason is I believe they don,t have enough power on site to do the Zinc expansion and this new line will give them all the power they need for any future expansion at Cantanun.
If anything TVI has a good cah flow and only to get better when they refinance and get the Zinc circuit on line.GLTA