RE:RE:RE:RE:New management team! + $30m cash>>
NOW debt will be $105m assuming the use the placement proceeds to pay off creditors cash will be around $5m (taking the 2m left from the 30m proceeds)
Companies don't need to pay down accounts payable to zero. EDV has accounts payable of over $100m for years. Just roll it over, pay the oldest due and add new ones every year. The largest loan amount to be paid is spread out till 2020. They don't need to pay the loan all at once. They were only deferring $3.1m, the time of first payment.
"The Senior Facility’s first repayment of US$3.1 million was originally due on January 31, 2016 and the final repayment is on January 31, 2020. The Senior Facility bears interest at the United States LIBOR rate plus a 1.8% margin plus a 2.5% ECIC premium for a six year term."
That interest rate is very good compared to other miners, with LIBOR so low around 1%.
grammadux wrote: I repost my quick caluclation from the LSE board, company will get a complete revaluation once production restarts and the MNG deal is sealed IMO
"Downside risk almost completely eliminated due to MNG as majority shareholder with deep pockets, bankruptcy is off the table Complete managment change, we all agree that the current situation was largely due to serious managment mistmakes Negative is the timing of the placement, as for most exsiting shareholders the price is very low Question is at hand, why they did not wait till production restart and do this deal at 5p instead? Nevertheless tried to calulate enterprise value before MNG placing: debt was around $105m borrowing plus $28m payables according to RNS cash was $3m equity was 540m shares valued around $0.04 per share equals around $22m So 105+28+22-3 is $152m enterprise value NOW debt will be $105m assuming the use the placement proceeds to pay off creditors cash will be around $5m (taking the 2m left from the 30m proceeds) And new equity will 1200m shares, question here is what should the intrinsic value be?? So if you have a look at other producers in Africa at the size auf AUE minimum value should around $300m (basically double the old EV) EV, for reference look at Terranga gold presentation which compares EV for Miners in Africa https://image.slidesharecdn.com/06-07-16-teranga-gold-agm-presentation-final2-160607123720/95/06-0716terangagoldagmpresentationfinal2-21-1024.jpg?cb=1465303052 Taking the $300m as EV minus $105m debt plus $5m, this implies an equity value of $200m, diveded by outstanding shares this would equal 0.165USD per share or 12p With secured funding and production restart, this sould be the target over the next year IMO