GREY:NEVDQ - Post by User
Post by
PieEconomicson Oct 22, 2020 8:36pm
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Post# 31769402
Need help deciphering liquidity portion of Oct. 5 news rel.
Need help deciphering liquidity portion of Oct. 5 news rel.1. "As a result of delays in certain expected cash receipts, including return of cash collateral under bonding arrangements..." -- Is the delay because of a legal reason? If so, what, and how much money?
2. "...and a lower initial draw under the working capital facility..." -- So, they had initially borrowed less than they could have or were predicted to have borrowed. Does this mean that the extra amount borrowed now is simply catching up to a total amount that had been expected all along?
3. "...Pala... has provided the Company with access to additional liquidity of up to US$8 million (the “Promissory Note”). The Company made an initial draw of US$4 million... maturity date of January 31, 2021 and bears interest at 8% per annum..." -- So, liquidity needs appear to be covered through the end of January at terms that appear reasonable.
4. "[ramp up] expected to be achieved during Q1 2021 rather than year end... " -- Now we see that the maturity date for the note is too soon. Will Pala extend the maturity date, and if so, under similar terms?
5. "...estimated timing for completion of the ramp-up remains subject to revision based on impacts of the COVID-19 pandemic..." -- Looks like the impact so far has already been factored in.
6. "...and other factors... additional costs expected to result from ongoing mine planning and the effect of smaller initial stopes on the ramp-up..." -- Will this most likely be the only "other factor"?
I would think having a new world class CEO, when he starts in a few days, will at least stabilize the stock price for now.