RE:Revolving creditDice,
That statement is complete BS. They have a 40M Revelover. Buying out Franco was about $10.2 million. Add that amount to $11,285M = apprx $21.5 million. They still would have approx $18.5 million left in their credit line. The revolver has been extended until the end of next year. These revolvers tend to stay in place unless you have liquidity issues. As long as they keep pulling gold out of the ground and come close to guidance they should be fine. I dont think they hit the revolver for extra funds in Q4. They havent touched it for awhile. If they follow guidance they should have over $50 million in cash flow this year alone at current prices. Keep in mind they still have low long term debt of less than $1M in capital leases. They are in good financial shape.
All most all of their short term debt is gone. From Q3 2017
6. Debt
The following table summarizes the components of Debt (in thousands):
| |
| | | | | | | | | |
| | | September 30,
2017 | | December 31,
2016 |
| Debt, current: | | | | |
| Gold Purchase Agreement | | $ | 9,412 | | | $ | 8,023 | |
| Capital lease obligations | | 759 | | | 479 | |
| | | $ | 10,171 | | | $ | 8,502 | |
| Debt, non-current: | | | | |
| Revolver(1) | | $ | 11,285 | | | $ | 11,165 | |
| Gold Purchase Agreement | | 2,686 | | | 9,935 | |
| Capital lease obligations | | 959 | | | 589 | |
| | | $ | 14,930 | | | $ | 21,689 | |
| (1) Net of unamortized issuance costs of $0.7 million. |
Debt, non-current: Revolver(1) $ 11,285 $ 11,165
Revolver
On March 23, 2016, the Company, as borrower, and Investec Bank PLC ("Investec"), as lender and security agent, entered into a $25.0 million secured revolving facility agreement (the "Revolver"). The Revolver was amended on October 27, 2016 to increase the borrowing capacity by $10.0 million to $35.0 million. During the year ended December 31, 2016, the Company drew $12.0 million from the Revolver to retire the Promissory Note (as defined herein) related to the acquisition of True North (as defined herein). Borrowings under the Revolver bear interest per annum at LIBOR plus Margin plus Risk Premium, as such terms are defined in the Revolver. Margin is determined by the Company's Gearing Ratio (a measure of debt to EBITDA) and ranges from 2.75%-4.00% per annum and the Risk Premium is 0.35% per annum, until the Gold Purchase Agreement balance is less than $10.0 million, at which time the Risk Premium is no longer applicable (as such terms are defined in the Revolver). Revolver borrowings may be utilized by the Company for working capital requirements, general corporate purposes, and capital investments and expenditures.
On March 31, 2017, pursuant to an amendment, the Revolver's maturity date was extended from March 23, 2018 to December 31, 2019, unless otherwise extended by the parties, and the reserves and resources required to be maintained by the Company under the Revolver were amended. The Revolver is secured by all of the Company's assets on a pari passu basis with the Gold Purchase Agreement.