What's Not To Like?
Sure, Eva was/is a nice asset, but really, where was CMMC going to find the $597 million (US $) to fund construction?
This cash infusion is very welcome. Although the deal won't close until the new year, it will stop most of the bleeding on the US $ denominated debt. The company will be very shortly making its semi-annual principal payment of $5 million and interest of about $9.8 million. October 9th is a Sunday, so I'm not sure if that requires payment on Friday (7th) or Monday. The bonds are callable next Oct at 104%.
I would assume this sale accelerates the expansion from 45ktpd to 65ktpd but I don't know if the mine sequence plan might prevent that. I expect that will become clearer by the time the money arrives, if not sooner. If they start expansion sooner, permits permitting, etc., etc, very doubtful they would redeem the bonds, IMO.
Shares outstanding as of June 30 = 213.8 million. With 5.3 million options and .7 restricted shares, etc. the fully-diluted number is pretty close to 220 million shares. Using 214 million, market cap at $1.95 is Cdn$417 M. Each nickel move in stock price means $10.7 M. Call it $11 million f/d.
As the market is telling you, this is a far better company than it was a week ago.