Almonty Industries Inc T.AII

Debt Repayment Question.....

[5ilverlining808]

from a HotCopper postrer, "tinnitus", that I have no experience to answer.
If some could answer on HotCopper or do it here I would pass that on to the poster.

From tinnitus :-
 "The debt repayments are the key problem here and how that relates to the future share price. That CND $30 M needs to be paid this year . I have no doubt that they had planned to have revenue by now to cover those debts .

My question is how do they handle these debt repayments.
Is it more debt ( which effects future profitability )?,
is it more equity ( which most likely effects the share price )?

Is it a mixture of both?

All I see are head winds on share price and little chance of this returning to the AUD1 that it was when it was listed on the ASX.

We can argue about the company's valuation, which most likely will hold solid ( unless there are issues around operating costs and environmental costs ) , but I am more concerned about the share price trajectory."

[QuarterDollar]

@5ilver At first glance and for most companies, this would be a problem but I am sure LB will be able to refinance the loan or repay one lender by borrowing from another.   The option of Issuing more equity would definitely dilute the stock which is why I don't think LB will do that. The reason I say refinancing will be done is because Sangdong will be very profitable

[whoisyourpapa]

Exactly!  All those loans and notes will just get refinanced just like they were previously except now the odds of Almonty being able to get refinanced is that much greater as we are closer to production and profitability than when those loans were refinanced/extended in previous years.  Its a non-issue in my eyes. I think one of the posters on Hotcopper also already mentioned as much.

[corton68]

When you look at the financial statements for year end what tinnitus is saying is entirely incorrect. im guessing just another troll (maybe our special Korean ex contractor troll?) trying to make trouble. The audit had no going concern notes and was a clean audit. This $30m is in long term debt means it’s not coming due this year.... Almonty Industries Inc. As at December 31, 2022   Summary