RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:comprehensive production updateI said MY calculations include loan and interest payments, not that the cost of production from Largo does. At the risk of being vain, I'll quote mytself:
Assuming payments start next May instead of this May and we reduce our payments by $1 M/month by extending the amortization, then at the "low case" from the forecast, this year we would have free cash flow before CAPEX of $30M and next year when the loan payments start, $39.2M before CAPEX."
So, I have pushed back the payment schedule from May of 2015 (where it currently is) and started them in May of 2016 instead similar to the previous negotiation we had with the banks, plus stretched the amortization period to bring down the payments by roughly 1/3 or $1 M/month. It's worth knowing that we would probably have to trade a higher interest rate for the push back in payment schedule but maybe not or not too much since a longer amortization means more income for the bank and a more stable grade on their debt.
I'm not calling the above the worst case, just a plausible case given where we find ourselves today. I welcome you to present the case you feel most realistic for analysis and comparison. I think we all know the worst case at this point, but I don't see how that would benefit our creditors given the alternatives easily available, the high-visibility of this particular deal (especially in Brazil), and the potential for much higher gains by working with us.
Incidentally, the CAPEX required for 2015 is about $4M if you want to factor that in.