From memory I think the interest rate on the Tribeca loan...

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Wilma85

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03/02/19

01:17

Post #: 37312103
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Originally posted by Dustymountain ↑

Originally posted by Berger978456
Honest question. The quarterly looked pretty shithouse and lithium prices seem to be locked in a never ending downtrend....for the first time I'm worried a little about Tawana/A40.
I think most if not all of the junior miners are in a tough space atm, contract prices are just to low (Chinese markets), even for "high" quality >6% lithium con`, hence an offtake agreement with SK or Jap` could suit us a bit better.
This situation presents challenges to try and lower production costs (high strip ratios don`t help) and to try and increase production significantly, and payoff debt.
On reducing production costs: If I can recall (tried unsuccessfully to find graph/image depicting drill results on the starter pit) our strike zone was a horizontal vein declining and not to shallow, which imo means we may never have the cheapest production rate overall.
On increasing production: Plant upgrades to be completed 3rd Q 2019
On debt repayment: We fortunately dont have as much debt as others and also being granted the extension of prepayment to Burwil, however the $40 Mill debt facility from Tribeca incurs a high interest rate (anybody confirm what the interest rate is? Is it not 12%).

IMO, we can be patient and wait it out till 2020 or we can sell, take the knock and try to invest ourselves into 100% profit within 18-24 months to break even!

Expect the best but be prepared for the worst. GLTAH

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From memory I think the interest rate on the Tribeca loan facility is LIBOR + 14%. Not very good terms but we were in a sticky spot at the time with the merger and ASX listing issue. I think all of our loans mature next year so we can't really afford to have another quarter like the last one.

A40 Price at posting: 16.0¢ Sentiment: None Disclosure: Held
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From memory I think the interest rate on the Tribeca loan...

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