OTCQX:LMCNF - Post by User
Comment by
pppon Jun 03, 2019 1:06pm
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Post# 29794403
RE:Should be trading much higher.
RE:Should be trading much higher. Latest Research (May 02, 2019): Target 3.25
OUR TAKE: Positive. Leagold announced a $400M refinancing package comprising a $200M term loan and a $200M revolving credit facility with a syndicate of international bank lenders. Use of proceeds from the financing will be to repay existing indebtedness and to fund project capex for the company’s organic growth portfolio.
Together with the financing, Leagold also announced a phased project development approach beginning with a restart of development for Bermejal Underground in July 2019 and pre-stripping at the Guadalupe open pit to start in Q4/19. Los Filos CIL plant construction is targeted to start in mid 2020 and Santa Luz construction start is planned in 2021. Capex for Bermejal UG and the 4k tpd CIL plant remains unchanged at $180M.
Overall we view the financing announcement positively as it (1) removes potential equity financing overhang for LMC shares; (2) removes the debt repayment requirement of $100M in Nov 2019 from the prior financing facility; and (3) allows Leagold to proceed with organic project development using a phased construction approach.