Post by
fishmillion on Jan 28, 2021 12:34am
The reality
A few concerns... looks like they got 145 million for general corporate purposes.... i would have hope they would have stated they earmarked all for flo ( read closely....)but they did not.. even if the unlikely occurs and they use all for flo they will still need about 200 + million to construct. 2. The 7% for a secured bond is steep...is basically a 7% dividend....but is what it is..... 3. Here is the big risk. .. they are now even more leveraged so if copper drops or continued problems at gib....then pressure mounts....remember under a best case scenario flo is at least 2 year from producing positive cash flow..... tko blew a ton of cash in Q4.... 2 years can be a long time.... bondholders now call all the shots
Comment by
fishmillion on Jan 28, 2021 12:41am
I still think 150 - 200 mill for 75 % of flo is the best deal for all... then tko can either fund the 25% or use from forward sales... lower risk and shareholders win.... then you all can do the tko dance with the yellowhead