IKN

More matter with less art

Terry MacGibbon Resources (TMR.to) has bad news for you

Just thought we’d remind you who this multi-million dollar failure is named after, it was a vanity project from the start. Anyway, here’s the news and there’s plenty included to set off the IKN First Law of Mining NRs. Let’s start by remembering that that current strategic review of the company, initiated on Jan 20th this year, was in response to its awful production efforts and increasingly poor financial position. The company said the review is, “…to explore,
review and evaluate a broad range of potential alternatives focused on
maximizing shareholder value, including a potential sale or merger of
the Company, joint venture of the Hope Bay mine, introduction of a new
significant strategic shareholder or various long-term financing
alternatives”
So what do they do? They make emergency adjustments to near-term financials that cost them even more money:

“…the Company has entered into an amendment to its amended and restated credit agreement dated July 26, 2017 (the “Credit Agreement”) with Sprott Private Resource Lending (Collector), LP and associated lenders (the “Sprott Lenders”).


The principal and interest payment due April 1, 2020, equal to US$5.0
million, has been deferred and will be added to the July 1, 2020
scheduled principal and interest payment. The $10.0 million minimum cash
balance covenant has been reduced to US$0.5 million until June 30,
2020. Other covenants were also deferred to June 30, 2020. The
consideration for these amendments is a fee of 1% of the adjusted
principal balance that will be paid on July 1, 2020 and an increase in
the extension fee from 1% to 2% should TMAC elect to extend the maturity
date from December 31, 2020 to June 30, 2021.”

Because nothing makes you feel relaxed about a gold mining company’s future than when it says “WE CANNOT EVEN PAY BACK FIVE MILLION DOLLARS”. But at least production has been more reliable in 1q20, right guys?
“…however, we have experienced continued throughput challenges due to unplanned maintenance issues.”
Oh.

Leave a Reply

Your email address will not be published.

Hello, you are not in a chatroom, you are in my living room. Opposing views and criticisms welcome, insults or urinating on furniture unwelcome. Please refrain from swearing if possible, it is not needed.