RE:RE:RE:RE:RE:CongoA few other points, Silver Knight
1) That $110M in cash flow for Bisie is EBITDA, before interest expense and taxes. After tax, it’s probably closer to $50M a year. That’s small scale in the mining world.
2) There has not been an exploration update since July, 2016. This is undoubtedly due to a lack of funding. Construction of the initial mine is the priority.
3) $25M of that $80M credit facility is owned by a 48% insider shareholder, Tremont Master Holdings. They’re getting paid 14% + 3 month Libor, currently a total of 16.7%. Principal must be strung out over nearly three years starting in 2020, and interest payment begin sooner. Tremont, like the other creditors, also receives substantial fees just for making the loan. It’s designed to avoid rapid payback. See lucky note 13 of the recent Nov 2018 financial statements. Retail investors need to watch out for stuff like this. They’re last in line to get paid. Everyone else feeds on the carcass first. A small chicken still has large bones, even though meat is scarce. It looks bigger than it is.
This is is why I avoid small stories. Mining is a very expensive business, and economies of scale like IVN allow everyone to benefit.