No wonder why STGO hate Independent auditors...I don't understand below logic, deposited money at 3% pa interest but borrow it by paying 8.2% pa interest....page#17, Financial statements. From the Capitron bank's web: "Deposit secured loan..Interest rate other currency /annual/ - Annual interest rate of term deposit + 3.6%..."
Why STGO needed Deposit secured loan a while paying extra 3.6% interest during this "no gold" period?
How they saved money: "...On December 31, 2020, the
Company opened two savings accounts of Mongolian Tugriks (“MNT”) 10 billion and $1,500 respectively at Capitron bank. The MNT Savings account has an annual interest rate of 12% for a period of 12 months and the US$ Savings account has an
interest rate of 3% per annum for a period of 12 months. On September 30, 2021, the Company closed a savings account in the amount of $1,500 at Capitron bank, releasing these funds to the current account..."
How they spent money: "...On February 9, 2021, the Company entered into a
loan agreement with the Capitron Bank of Mongolia (“Capitron”) for $2,850. The loan is secured with a cash deposit held by Capitron totaling $3,000. The cash deposit is disclosed as restricted cash. Under the terms of the loan, the Company is required to sell 30% of its gold produced throughout the financing period to Capitron. The purpose of the loan is to provide financing for the purchase of a new crusher at the ATO project. The outstanding principal balance on the loan is subject to
interest at a rate of 8.2% per annum, payable monthly. Repayment of the principal balance on the loan is due on January 28, 2023. The Company repaid the loan for new crusher of $2,850 from the its cash deposit of $3,000 on September 27, 2021.."
https://www.capitronbank.mn/d/%d1%85%d0%b0%d0%b4%d0%b3%d0%b0%d0%bb%d0%b0%d0%bc%d0%b6-%d0%b1%d0%b0%d1%80%d1%8c%d1%86%d0%b0%d0%b0%d0%bb%d1%81%d0%b0%d0%bd-%d0%b7%d1%8d%d1%8d%d0%bb?lang=en&type=