Something must be wrong here ? According to the last credit aggreement from September 25, the credit conditions were
$20 Mio and $900.000 monthly payment rate starting from March 2013
Source: https://www.gryphongold.com/investors/news_releases/2012/index.php?&content_id=243 (this was the change aggreement to decrease the monthly payment rates)
Now they speak about $25Mio credit line and $1,4Mio monthly payment rate reduced to $400.000. Did they switched back to the old credit aggreement ? Is the additionl $5Mio the interest rate ? 25% on $20Mio ?
Taking the $900.000 from the last aggreement, the rates on 40% are even increased ($360.000 would be 40%). On top the $5.6Mio have to be repayed in six months ?
$5.6Mio in six months on 40% is like $28Mio free cash / year on the 100% operation. $400.000 on 40% is like another $12Mio free cash / year on the 100% operation. And they want to add crushing + hauling equipment.
$40Mio+ free cash / year ? (based on 40% interest)
That's all to be achieved in 6 months and they are still in the process to ramp up production ?
Can somebody explain me, what I am doing wrong in my calculation ?
Based on past performance, I see only one conclusion:
"If one party fails to meet a financial obligation it will be subject to dilution in their ownership interest in Borealis. In addition, if Gryphon fails to meet monthly payment obligations under the Senior Credit Facility, its interest in Borealis will be diluted in accordance with the terms of the Credit Agreement relating to the Senior Credit Facility." https://www.gryphongold.com/investors/news_releases/2013/index.php?&content_id=254