Almonty Industries Inc T.AII

Alternate Symbol(s): ALMTF

Metals & Mining Industrial Metals & Minerals

Almonty Industries Inc. is a Canada-based company, which is engaged in the mining, processing and shipping of tungsten concentrate, as well as the exploration and evaluation of its projects. The Company operates through four segments: Los Santos Mine, Panasquiera Mine, Valtreixal Project, and Woulfe. The Los Santos Mine is located in Spain whose operations relate to the exploration and mining of Tungsten. The Panasqueira Mine is located in Covilha Castelo Branco, Portugal, whose operations relate to the exploration and mining of tungsten, as well as the production of copper and tin concentrate by-products. The Valtreixal Project is located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project. Woulfe’s properties are located in Gangwon Province, Republic of Korea. The Woulfe's operations relate primarily to the exploration, evaluation and development of the Sangdong Project.

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Almonty Industries Inc > Loan

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Post by QuarterDollaron Jul 02, 2022 11:16am

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Post# 34797341

Loan

The loan is $75M to be paid back over 6.25 years.
With the WO3 plant, the loan will increase to $125M and based upon the payback time of the original loan, I expect the payback period to be extended to 10 years.
The floating interest rate on the loan today is 4.75% which I will round up to 5% for simplicity, makes our first payment $12.5M + $6M Interest.
Because interest rates will continue to increase over the next 2.5 years (i.e. Loan Grace Period), lets say our first loan repayment including principle is $20M.
As the principal is reduced with each repayment, the amount to be paid back will be reduced by $500K each year over the 10 year period.
What I find intriguing on page 19 of the Investor Presentation, is that Free Cash Flow is approximately $50M per year, AFTER TAX & DEBT SERVICE.
This chart did not take into account the additional $50M loan plus interest. But for the purpose of my calculations, I will asume the profit (i.e. profit made from the WO3 plant including the 25% increased production from recycling), and the anual loan repayment (pricipal plus interest) will cancel each other out.
Furthermore, because of the push of the SK Gov't and industry, we will be at full capacity one year earlier than what is stated on the chart.
This means, after servicing debt and taxes, Almonty will have approximately $350M in the bank.
Also, after the loan is repaid, the profit should jump by another $12.5M per year.
Well smart decisions have to be made with that money. I am sure some of that will be allocated to build out the Moly Mine. But more importantly, we need to find a way to reduce investment costs of the NA mine.