TSXV:CAV.H - Post by User
Post by
dgh7on Mar 15, 2012 5:46pm
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Post# 19677205
Servicing Baja's Debt
Servicing Baja's Debt In his interview with Jay Taylor, on 16 Feb. 2011, Mr. Greenslade said that at then current commodity prices (and without manganese carbonate or manganese metal), Baja will have sufficient free cash flow to eliminate long term debt from its balance sheet in forty months following first copper production.
The specific details of the repayment schedules for both Senior debt (first mortgage debt) and subordinate debt are available from the Baja Website. These details include Baja's ability to make additional pre-payments over the minimum requirement. This is something of special interest to me.
What will Baja decide to do with their net free cash flow? Pay down debt, buy back shares (normal course issurer bid), issue dividends to shareholders, sit on the cash, plough cash back into the business, or go outside to other investment opportunities. I don't forsee a decision being made for another twelve months. I know what I would do if the world economy heads towards another 2008 financial meltdown. Cash is king. IMHO.