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TMAC Resources Inc. T.TMR

TMAC Resources Inc is an industrial metals and materials company. The business acquires, explores, and evaluates mineral properties. Its lone business segment is Mining; this segment is engaged in the exploration and development of precious metal resources, primarily gold. The company generates the vast majority of its revenue in Canada. TMAC Resources' primary mine is located in Hope Bay, in the Kitikmeot region of the western Nunavut Territory. TMAC mines for gold resources and inferred minera


TSX:TMR - Post by User

Comment by snowshoedbon Jan 10, 2020 4:09pm
104 Views
Post# 30540411

RE:RE:RE:RE:Risk/Reward

RE:RE:RE:RE:Risk/RewardCorrect... the full nut is due at Dec 31.... and yes they can refinance with a 1% penalty... assuming the lender will accept and that they dont violate any banking covenents.

See Q3 Condensed Statement of Cash Flows  The company has only generated $7.7M in cash available for debt payments (Cash from operations less CAPEX) =  in the first 9 Months which included a Sale of Assets of $36M...

Then the real discretionary cash from operations is a cash deficit of ($27M) which is calculated as cash from operations $68.9 less Additions to PP&E (CAPEX) of  ($94.2M) less Cash Restriction ($1.7) .... So they are not really generating cash flow to service the debt....

Company must make quarterly principle payments of $2.5M beginning in April 2020. Can't do that if they are running a deficit of cash!! The are in a slow liquidation my friend.... 

If they didn't flush $7M x 7 Quarters... they'd have $49M extra dollars that they could have used to to service the debt.

I think Sherm sees it differently... he doesn't think the $7M/qtr really matters... he thinks we should just hope for higher gold prices. 
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