Almonty Industries Inc T.AII

Loan

[QuarterDollar]

• 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. 

[TechOne]

Do you have the link to this presentation ? Thanks.. 

[lonade]

that this will be a cashcow for the company was clear once the whole framework around the financing had been put in place.  since some time now the risk is all about executing along those lines and getting into production. i have projects around me being halted, scrapped and pushed to "better times". let's hope that the procurement commitments made last year have averted any

[QuarterDollar]

@TechOne,  it is the current Investor Presentation on the Almonty Website. @Ionade, well said.... I was rushed my last post a little hence my conclusion was not clear...... Basically without Almonty pursuing a NA mine, they will be in the position to pay dividends as soon as Sangdong is at max capacity and can continue to do so for many years to come.  The caveat in when

[QuarterDollar]

I should also point out that even if the purchase and build out of a NA mine is costly.  In the very long term, it is very beneficial to the company because the initial cost will be purchased at early inflationary dollars and will look very cheap to future prices. (Inflation will be here for many years) The downside is, no dividend payout for a long while and we will have to choose

[5ilverlining808]

Excerpt from QuarterDollar :- "As for the Valtreixal and Moly mine, they both will require some money to build out but they both will be leveraging existing infrastructure and won't cost anywhere as much to bring into production." I would not be surprised if the Val Project will be put on the back burner for the moment, (but not forgotten or dead, just a "go slow") so

[QuarterDollar]

I am going to disagree on Valtreixal with you 5ilver because it is in the current Investor Presentation. Los Santos is at End of Life. LB won't let mining equipment sit idle and be non-productive. LB already stated that he will move the mining infrastructure over to Valtreixal. Furthermore, LB just recently stated Almonty has a customer down the road from Valtreixal asking when Valtreixal

[QuarterDollar]

From my last few posts, we can deduce Almonty will be very profitable..... The one thing that is casting a shadow for me is if Almonty is going to be so profitable in the very near future, then why did LB sell almost 10.6 million shares at $1.06 to the Plansee Group a year last April?  At $70M profit which is 3-5 years away, the share price is estimated to be approximately $8 per

[TradingKiwi]

After the private placement on the 7th of June I'm now concerned that drawdown confirmation is not as close as I was expecting.  Although I have faith in LB, once the drawdown has started this very large investment for me would then be significantly de-risked, hence the singular focus of all my posts.  In the absence of any real update from LB on this ...I'm interested in people

[5ilverlining808]

Speculation only Kiwi from me :- From an earlier post June 22nd 2022 :- "Possible Reason For Delay. We know that:- - Financing is approved. - Metso/Outotec deal is sweet. - Underground mining company is way ahead of schedule. - Power and water is on track. And so much more. But, remember when POSCO EPC (engineering/procurement/construction) was replaced by another EPC company

[QuarterDollar]

@5liver.... another reason I am going to disagree with your opinion of Val going on the backburner and for that matter the Moly mine (..granted to didn't say anything about the Moly), is that these two projects are low hanging fruit. They will provide more profit for Almonty.  A NA mine will be sucking money until the loan is paid off, so it is better to produce more profit each year to

[blueskies]

Thanks for the post @Ionade your thoughts on the safety of Almonty vs many others in the current market mirror my own. I would prefer to hold Aii at $1.50+ rather than $0.90, just looks nicer on the accounts but that's just a personal aesthetic. Should get their fairly quickly with a couple of long awaited news releases. Also has potential to add to their margin of safety with