RE:RE:2nd Q results are inTwo items of interest in the 2Q19 financial filing.
Lupin & ULU Reclamation
It appears that MND received a credit of $3.2M CAD from CDN Federal MINA on April 18th, 2019. Nice to see some cash coming back from reclamation bond. There was a total write down of $5M for the ULU property. No indication on when the reclamation will be completed.
I hope more credits are to come from reclamation bond.
Revolver Facility
"On July 15, 2019, the Company drew down the remaining $5,000,000 on its Revolver Facility with HSBC." This draw down is post 2Q19 that ended June 30th 2019. This maxs out the $40M revolver facility.
Also, "As at June 30, 2019 the Company was in breach of two covenants of its Revolver Facility, however it had received a waiver prior to June 30, 2019 in respect of these breaches". This happened around the same time last year. HSBC appears to be very leanent on the contractual obligations of the facility given the draw down of the remaining $5M by MND.
I believe the payment of revolver facility is June 2020. At $1400 Au oz., and not accounting for operating costs, it will take 28,572 Au oz. to pay back the revolver facility. Spread over the 3 remaining quarters to June 30, 2020, this equates to 9524 Au oz per quarter. Perhaps the payment could be a combination cash and shares.
Getting Costerfield's operating costs down to $900 Au. eq by year end 2019 would boost cash flow heading into 2020. From what I can see, Costerfield is still burning cash to bring the Youle lode in production.