Math on the payments
Been poring over the latest MD&A and am going to bring up something that we've touched upon before.
The $350 million credit facility.
The first payment is due in January 2016, or 15 months time. ($58.3 million) ---
Their cash position as of right now is about that amount and they're going to start raking in revenues in excess of guidance, so I'm really not worried about a default in payments even if gold stays in the $1270-$1300 range.
The big question for me is Hounde. Where will the money come from? Endeavour Mining to me is an investment that has the potential to repay its investors in multiples of the current share price. It's one of the highest leveraged plays out there in the junior mining space (And my favourite company!!) Will these guys be taking on more debt to finance Hounde? Sure, Hounde is forecast to have a RIDICULOUSLY low AISC/oz, but is getting Hounde online ASAP the best course of action?
Granted, if gold price rises, as I think it will, Hounde will be up and running as quickly and as smoothly as Agbaou. I guess what I'm asking is, what's the breakpoint gold price that would enable EDV to go ahead with Hounde without delay? Gold at $1270, in my mind, has them staying the course, but these guys are very ambitious. Neil even threw out the dividend card in May.
Thoughts?
Shat