OTCPK:VGIPF - Post by User
Post by
tinman8on Jun 18, 2013 9:03am
191 Views
Post# 21536535
Enough cash flow to tackle debt
Enough cash flow to tackle debtQ1 rpl's figures -27 million cash flow. How much is available to pay down debt ? 27 million minus almost 12 million in distributions minus an amount for capex. Being conservative let's say average 25 million per Q - 100 million a year.Subtract 48 million - current annual divi cost and say 25 million for capex. This leaves 27 million a year to pay down debt. Probably not enough to satisfy the market. But with a 50% divi cut another 24 million to add to the27 million = 52 million. Now we are talking debt below 20 million is possible in 18 months or so - especially with a few modest asset sales of say 12 - 15 million.Rpl has the ability to get debt under control, increase production and the SP be on the up and up by next year.>