Almonty Industries Inc ALMTF

Financing

[Natrav54]

The financing deal for Almonty’s Sangdong Tungsten Mine involves a loan from KfW IPEX-Bank, which is structured to support the development and operational phases of the project. The key terms include:

1. Loan Amount: Approximately USD 75 million.
2. Interest Rate: Competitive rates aligned with international development financing standards.
3. Repayment Period: Typically spans over several years, often structured to match the project’s revenue generation timeline.
4. Collateral: The mine’s assets and future revenues are usually pledged as collateral.
5. Additional Support: Involvement of OeKB for export credit guarantees and additional financial backing.

These terms are designed to ensure the project’s financial stability and successful completion.

[Natrav54]

KfW IPEX-Bank is a German commercial bank specializing in export and project financing. It is a wholly owned subsidiary of KfW (Kreditanstalt fr Wiederaufbau), which focuses on development financing1. Since January 1, 2008, KfW IPEX-Bank has operated as a legally independent entity governed by the German Banking Act1. The bank’s primary mission is to support the German and European

[Natrav54]

These guys are not here to fool around.  They know every inch of this project out to at least 5 years.  They are used to long term assets with long term lead and progress of asset.  They have cash flow projections provided by the company and verified by them.  The fact that they are continuously financing tells me lots.

[Natrav54]

The only thing I don't like is the share structure.  Too many shares and too many in unknown hands.  Also don't like the debt structure although i note the debt is in friendly hands. So there are risks here so as always be careful.  

[Natrav54]

Actually the debt is very friendly.  No interest paid as interest is deferred and accrued but its expensed yearly.  

[Natrav54]

Does anyone on the board an accountant?  does anyone have any idea what cash flow per share is?  Are they cash flow positive?  I think Black alluded to this?

[Natrav54]

I calculate roughly about a loss per share before EBITDA of about a penny a share

[1dollarinto2]

When Almonty talks about being profitable they are talking about how they operate their mine in Portugal. They have positive earnings if you only include mining operations. Lewis uses this measurement as an example, showing that Almonty knows what they are doing in terms of mining tungsten at a profit so investors should expect the same once their mining operation is expanded. Overall Almonty

[Natrav54]

I get it.  But I think they are close to positive c/f if I am not mistaken

[5ilverlining808]