Correction Post The repayment of the Sprott $7.4M Gold Loan was $12.4M in an 8 month period. An annual interest rate of 100%.
Works out to an average payment of $1.55M per month.
During the first quarter of repayment of the Sprott Loan, Golden Band produced 6940 oz. The gold price averaged $1428/oz after commercial production was declared. Total sales during the quarter was $6,109,678 on the 4,408 oz produced prior to commercial production and $4,206,120 on the 2945 oz produced after commercial production was declared - a total sales of $10,315,798. The total cash payments made on the loan was $3,660,450 - an average monthly payment of $1.22M.
In the second quarter of the Gold Loan, Golden Band produced 10,933 oz. Revenue from the gold sales was $14,955,812 at an average gold price of $1491/oz. The total cash payments on the loan was $3,968,307 - an average monthly payment of $1.32M.
Now here is where it gets cute!! In the 3rd quarter of the Sprott Loan, Golden Band made made $4,782,403 in loan payments!! A average monthly payment near $1.6M!! Gold sales of 11,950 oz during the quarter at an average of $1,731/oz for a revenue of $20.7M.
The $5.5M Bridge Loan is easily repayable in 6 months even if the Canadian dollar gold price, currently at ~$1,666/oz, falls below $1,500/oz. The proof is in the repayment of the Sprott Gold Loan last year. Gold production from Roy Lloyd was 9,679 oz last quarter, therefore it should be safe to assume near 10,000 oz/quarter is a consistent production number going forward from the single mine (considering the truckers took a 2 week unnotified holiday during the last quarter).
$5.5M at 6% per annum over six months works out to a mere $944,166/month.