Imperial Metals Corp T.III

Share Buy Back

[Madmaxoo7DBM]

Would you recommend they buy back their shares with borrowed money at 12% ?

[miningfundi]

There's no doubt that III buy-backs at its current low share price earns significant value for III shareholders, even at a cost of 12% per anuum. But, even though Mt Polley and Red Chjris are providing strong positive cash flows, the buy-backs may result in liquidity problems for III since the expansion of those projects still requires significant capital investment. It may be risky for III to

[Temeraire2]

This makes for an interesting discussion and an important piece of work for Mgt (..sadly CFO has virtually no skin in the game...)  The reality of what will cost to build out the block cave - insights courtesy of MiningFund - is that a very special financing/equity raise/buy out etc, will ultimately be required - MT Polley cashflows as good as they are.  In the meantime, some portion of

[miningfundi]

An independent III is highly unlikely to qualify for third-party project financing, even with a very robust Red Chris Block Cave Feasibility Study. It is more likely that there will be a RC property purchase or an III purchase by Newmont or another substantial mining company, or the purchase of III by ME.   Unless required to hedge by a major project financing or other large commitment