RE: Not bad, not good. You must be looking at different report. They failed to meeting minimal EBITDA in Q4. The cash sweep is in effect, the money would have been due on the 6th, now differed until May. They also got the sweep changed from 50 to 25 percent, but that cost them an extra $10 million in aggragated payments prior to the sweep being removed from the terms.
Three years of production and they are still unable to generate the minimal amount of cash flow/EBITDA required under the terms of their loan. This is not the first time they have failed to meet these requirements, remember the notes and all the funny business with the FS in the past, having to redo several quarters of statements, failing to include the hedge as a liability.
They maybe able to turn things around at the mine but there are several variables that are working against the ability to generate significant cash flow with their copper production. Remember in the first three years of production they targeted the highest grades of copper, they have little of the higher grade ore left, that means they will have falling head grades which will increase cash cost. They have super high FS&R charges on their copper concentrates, right around $1 per pound. The outlet on this end is bleak if copper prices soften.
I could go on and on with the problems but you have heard them all before. Dilution has been MLs solution for lack of profitiability, I see more of that in the near future.