Cline Mining Corporation T.CMK

Bond will mature in Feb 2014

[EOIM]

https://www.clinemining.com/news/pdf/120430.pdf

Get the facts correct and dont allow all the bashers on this board to steal your shares. The bond matures in Feb 2014 and not in 2013 as some bashers had posted here. So they have enough time to work things out!!

[mr1derful]

EOIM, that was a typo on my part saying the debt matured in 2013. In my earlier posts I mentioned 2014 as the maturity date. The point is that I don't see New Elk starting up in 2012 given the current coal market conditions. So even if they start up production in early 2013 that only gives the company a little over a year to make enough profit to pay back the $50 million. The problem is the

[GUNSS]

By the end of next year, still 16 months away, if Cline has ramped up to say a 1 million tons annualized run-rate, the $50 million of debt could probably be refinanced. Or, maybe by then only $25 million will need to be rolled over. Or, perhaps half of the $50 million could be converted to equity, (a negotiated transaction, the bonds are not 

[mr1derful]

GUNSS. If CMK tries to pay back the debt owed by issuing equity then you will see major dilution and an even weaker share price. Given that the company has a market cap of around $60 million, even paying half the debt with equity is not really feasable. Also, I am arguing that the company's cash position will be so low by the time they re start New Elk that they would need additional financing

[Tinyhopes]

  BHP Billiton (BHP) said layoffs could occur at its Australian coal mines as the company faces a deteriorating market, the latest sign of global miners scaling back operations due to slowing industrial activity in China. Reuters  From RBC. tinyhopes