RE:RE:RE:RE:don't like debt financing deal - risky
The problem I see is time. It will take probably a year to start showing a decent profit. If I recall correctly, the company projects the first 12 months of production to be break-even (according to the presentation) - so that's means the company will have to raise funds to service the interest and debt for the first 18 months of a 3 year debt. If there are any significant delays, then it starts getting dangerous. If they get higher than budgeted prices that's great but remember they only expect 244,000 tonnes of production in the first year. An extra $1 or $2 in price doesn't mean much in the first year.