RE:Appears Don is in deep troubleYeah I am not sure either I didn't look up the context. On its own, the sentence seems to suggest that if DON lacks the requisite funds, and has an inability to raise further funds, to contribute to their portion of start up capital that their interest converts to a 2% NSR on DON's interest. From what I recall DON was expecting to cash flow about $15 million per year based on their 35% interest, inclusive of SND's streaming deal. SND will cash flow about $12 million. Combine the two, that 35% interest is probably worth $25 - $30 million a year in cash flow.
Look at it another way, based on conservative metals prices (which are a little below where metal prices are today), the project had a $10 million NPV, but that was based on $400 million CAPEX in the aggregate. So if we add back the CAPEX, since DON has already incurred the bulk of their CAPEX, we'd be looking at what the mine is worth today at those conservative metal prices. That was based on the original 4 or 5 year mine life, whatever it was . So another way to look at it would be to say that, DON's interest is worth over $140 million (given that the mine life looks will probably be at least 7-8 years).
I don't think SND would take ownership of DON b/c I think Nolan is concerned with his re*****tion among the mining community, he doesn't want to be known as someone who forces companies into default. However with the terrible performance of SND it'd be nice to see him play hard ball. You know I still own most of my position in SND, some at lower prices, but I just shake my head. You can run the numbers all you want on the streams (which I did), but in the end, if you don't sign a deal with a competent management team who isn't low balling their CAPEX, you've got nothin', as we have seen with 4 of our deals blowing up.
Looks like TBD is done, I'm not sure what happens with that asset. They have a debenture but I'm not sure if the debenture has security on the asset, or if we took it. As far as CSI goes, it looks like they are going to survive, but barely. Which is kinda good news for us, looks like they aren't going to have the money to buy back half the stream, that palladium stream is going to be worth a lot down the road, especially given the improvement in the auto sector. I might take a look through TBD's MDA to see what happens in the event of bankruptcy.. will report back if I find anything.