i agree
TGR: Can you give us a couple of names that did not survive the $1,000/oz gold and $18/oz silver stress test?
BA: The one we've been focused on for some time is Lake Shore Gold Corp. (LSG). The company has a heavy capital program that will end in December. But it also has debt obligations with some fairly lofty covenants, which it is starting to repay. Using our forecast of $1,000/oz gold, come December, the company will be out of cash. Indeed, even with a gold price between $1,300-1,400/oz, it will have limited cash at year end.
Its debt obligations mean the company will need additional financing as a bridge. But if you already have a pretty aggressive debt structure in place, short term and long term, how do the secured lenders approach this?