GREY:WFEMF - Post by User
Post by
CJHalleeon Jul 12, 2012 12:02pm
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Post# 20107029
Couple of Things
Couple of Things Upon re-reading the news release a couple of times there are a couple of things I have questions about:
1) Term of the loan is 12 years. The payback period of the project was just over 2 years so why such a long term? (Perhaps that was out of WOF's control as I would assume the bank would want as long a term as possible); and
2) The loan is for $104M. Combine that with the $70M from IMC and the potential $20M in debentures and that puts the total amount of financing at $194M. The total capital cost was around $150M with a contingency built in with the potential for costs to decrease. Why do we need this much? I'm wondering if something else might not be at play such as the production capacity is being expanded (i.e., 600,000 to 800,000 mtu's per year instead of 400,000 mtu's). Thoughts anyone?