RE:RE:Dundee: Neutral rating and $1.20 target for Largo ResourcesMy understanding is that with no renegotiation, we will start paying $3M/month to service the debt in May. That's 8 months at $3M which is $24M. I'm not sure where they get $38M from. Even at 12 months, assuming they forgot that debt repayment starts in May, it would work out to $36M not $38M. Did I miss something? Out of cash in Q1 is not something I see happening from what I know now.
Incidentally, the $3M/month payments starting in May and the $4M CAPEX this year for the tailings pond (more if they do the expansion, and other projects) comes right from Largo.
There's no doubt we're not in a great position compared to where I thought we would be, but I do believe we'll get the debt restructured to something sustainable that will increase our total interest to the bank but the terms are the question. If it is, and the V price recovers, those lucky/gutsy enough to get in at this price could make a lot of money. I use "gutsy" because the future is far from certain, but I have a good degree of confidence that V will recover and we will work something out with our lenders.