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Typically credit facilities are lines of credit. That is what started my research in that direction with Mr. Jones.
Plus in my first post reply from Mr. Jones he aludes to the potenial of accessing the credit facilities if needed.
3rd line of credit for $10MM was implemented and the 2 previous lines of credit were ammended. Total of $40MM in credit facilities as of Q3 2014...Page 16 of the September 30, 2014 financials...
16. BANK LOANS
In February 2013, the Company announced the arrangement of two credit facilities. The credit facilities for $30,000 were completed with two commercial banks in the Congo, Rawbank and Ecobank, each for $15,000, and at rates of 9% and 8.5% interest, respectively.
The Rawbank facility was made available to Twangiza Mining SA, while the Ecobank facility was to Namoya Mining SA. Both facilities have been fully drawn.
The Ecobank facility was renegotiated in May 2014 to be repayable in four equal quarterly payments from May 31, 2015. The restructuring of the Ecobank agreement represents a modification of the agreement and has been reflected in the current period. During the three months ended September 30, 2014, $3,000 was received as a short-term loan from Ecobank, which was
repaid in its entirety during the period.
The Rawbank facility (including accrued interest) referred to above was renegotiated in October 2013 to be repayable in ten equal monthly installments starting in April 2014. The said facility was fully repaid in August 2014. In July 2013, an additional $3,000 credit facility was received from Rawbank. The loan bears interest of 10% and is repayable
over 24 equal monthly installments starting in September 2014.
In September 2013, the Company received a $10 million credit facility from a bank in the Congo, Banque Commerciale du Congo ("BCDC"), at a rate of 8% interest. The facility has been fully drawn. The BCDC loan was repayable, starting February 2014, in ten equal monthly installments of $1,000 and a final installment of $384. Subsequent to the first monthly
installment, the remainder of the BCDC facility was renegotiated to be repayable in monthly installments of $500 for the remaining 16 months and final installment of $221. The interest rate was increased to 9.5% per annum.
As of September 30, 2014, bank loans consisted of a current portion of $14,558 (December 31, 2013 - $29,250) and a noncurrent
portion of $8,203 (December 31, 2013 - $13,250). During the three and nine month periods ended September 30,
2014, $16,230 and $22,739, respectively, was repaid for principal on bank loans (three and nine month periods ended
September 30, 2013 - $250 and $10,250).
The Company has accrued interest on the credit facilities of $62 as of September 30, 2014 (December 31, 2013 - $419) under
accrued liabilities in its interim condensed consolidated statement of financial position. The Company has recorded interest
expense of $119 and $770, respectively, for the three and nine month periods ended September 30, 2014 (three and nine
month periods ended September 30, 2013 - $341 and $911, respectively) and $470 and $1,627 was recorded in mine under
construction for the three and nine month periods ended September 30, 2014 (three and nine month periods September 30,
2013 - $nil) in relation to the bank loans.
You can see this breakdown of the lines of credit in the Q1 2013 financials.
As far as I could see they started in 2013 with $30MM lines of credit. See below from Q1 2013 page 13.
13. BANK LOANS
Current Non-current Total
$ $ $
Balance at December 31, 2012 - - -
Withdrawals 18,750 11,250 30,000
Balance at March 31, 2013 18,750 11,250 30,000
In February 2013, the Company announced the arrangement of two credit facilities. The credit facilities for $30 million were
completed with two commercial banks in the Congo, Rawbank and Ecobank, each for $15 million, and at rates of 9% and 8.5%
interest, respectively.
The Rawbank facility (including accrued interest) is repayable in six equal monthly installments, starting in October of 2013 while the Ecobank facility is repayable on a quarterly basis from March 31, 2014. The Company
has accrued interest on the credit facilities of $226 (December 31, 2012 - $nil) under accrued liabilities in its consolidated
statement of financial position.
Namoya was at 5K tonnage per day of stacking as of end of June with the Volvo fleet purchased. I do not think the Volvo expense will be incurred during the 3rd quarter as an expense either. Mr. Jones did not have the cost of the Volvo fleet but was going to relay it to me.
The CAT 777's will provide the overage additional transport needed to cover any maintenance, breakdown, etc. and to get Namoya to the goal of 6K tonnes per day.
Enjoy the ride.
NP
Just trying to put things in the right perspective after the last few days post Q2 numbers.
I hope you enjoyed Mr. Jones' response. I know I did.
Not only does BAA have continuing income from production...they have access to lines of credit to smooth over the cost of the Namoya commercial delay, the TMF costs and the debt service.
Run your numbers at $1100 oz gold and 50-55,000 oz of production. Starting Q4.
JUST MY OPINION OF COURSE. Enjoy the ride. Coach T.
Comments from Mr. Jones on my questions of the existing local bank lines of credit of $42MM with current balance of $13MM and its availability if needed, Questions on Namoya, the 9 new Volvo 40T trucks, and the TMF regarding Twangiza production.
He will get back to me on the cost of the 9 Volvo 40T trucks for Namoya before the CAT 777 got delivered...this is how the tonnage was increased to 5K per day by end of June at Namoya without the Cat 777's being delivered.
BAA has more than enough to get thru the 3rd quarter according to the bank loans and Mr. Jones other comments below.
To: Martin Jones
Subject: Bank Loans
Mr. Jones:
On page 14 of the Q2 financials there is a reference to ”Bank Loans”. Is this group of loans made up of 2-3 lines of credit that is renewed each year? If these are lines of credit…are the total availability amounts of these $42MM and is BAA planning to utilize these loans for the improvements?
"As at the end of Q2, bank loans accounted for $13.6 million in liabilities. It is possible we could take advantage of un-used capacity."
Mr. Jones:
The market in general is concerned about the ability to have Twangiza have less production while undergoing the TMF improvements and have the “commercial production" of Namoya pushed out to the 3rd Q and the lost revenue that would ensue.
Mr. Jones:
"The TMF construction has no impact on production at Twangiza. Our guidance for the year’s production at Twangiza is 115,000 to 125,000 ounces. In the first half of the year, production was about 70,000 ounces. So according to guidance, It is possible there will be some decline in gold production in the last half due mainly to the processing of lower grade ore. However, our operations people continue to work hard and successfully to find ways of increasing ore throughput and recoveries."
Mr. Jones:
"Namoya has been slower to ramp up than originally intended due to the delay in financing and delivery of the third truck fleet. This was discussed in the press releases of July 9 and August 12. However, we are on track to enter commercial production by the end of Q3, which is September 30th. As per last week’s press release, we are anticipating reaching 9,000 oz/month at Namoya in Q4. The current guidance for the Company is total gold production in 2015 of 175,000 to 195,000 oz."
Regards,
Martin
Wait until investors realize that this week was the height of the "get me out craze"!
Investors will have to pay up to get back in. Institutions will be after BAA because we will be in September then, and, BAA will still be operating...only now with two fully commercial operations. The company will then start the dog and pony show to institutions.
By the way, in my spreadsheet the increase in number of ounces produced is a far greater determination of revenue and income vs. the actual price of the gold sold right now.
A $100 increase or decrease in price of gold based upon $48500 oz produced is a difference in gross revenue of about $4-5MM=/-.
A difference in the amount of gold produced by 10K ounces is an increase or decrease of $11MM based upon a gold price of $1100.
The price of gold would have a greater effect after production stabilizes what ever that might be.
Just some thoughts...enjoy the ride. Coach T.
Oooooohloveit when you talk like that!!
that certainly can also be a be part of it. Still have my shares also.
Lib Stat: How many shares did you sell yesterday if you do not mind the question?
My apologies yes I was.
Lib Stat said he sold his shares yesterday. I believe we have many positive divergences setting up on the daily chart.
I think the liquidation of shares yesterday whose ever they were could be the set up for a rally into the mid $.24-26 area in the coming weeks.
A rally to the area where we were before Q2came out and has been misunderstood.
I have gone back to Q1 of 2013 to look at the section called "Bank Loans". There are references to this group called "Bank Loans" being made up of three different loans by three different institutions one of which was Ecobank.
I have sent a question to Mr. Jones trying to clarify this section of loans. On page 14 of the Q2 financials under "Bank Loans" they have been paid down by an additional $7,318,000.
My question to Mr. Jones is are the loans made up under the section "Bank Loans" still made up of these three loans and are these loans lines of credit.
There are only $13,674,000 left on these loans paid down from $42MM. These loans have been paid down by approximately $32MM in the past 3 quarters. This was certainly a drain on cash flow.
I BELIEVE THAT ONE OF TWO THINGS ARE POSSIBLE...ONE BAA CAN DRAW OFF THESE LINES OF CREDIT OR LOANS AGAIN IF NEEDED FOR IMPROVEMENTS OR TWO THE $32MM CASH DRAIN FROM PAYING THESE LOANS DOWN AGGRESSIVELY THE PAST THREE QUARTERS WILL ALLOW BAA TO HAVE MORE CASH FLOW TO COMPLETE THE TMF, GET NAMOYA RUNNING and COVER ALL EXPENSES.
I THINK THE MARKET HAS OVER REACTED TO THIS Q2.
Page 14-15 regarding Bank Loans from the financials:
Balance at January 1, 2014 42,500
Withdrawals 3,000
Renegotiation Fee 106
Repayments (24,614)
Balance at December 31, 2014 20,992
Repayments (7,318)
Balance at June 30, 2015 13,674
The Company has accrued interest on the credit facilities of $99 as of June 30, 2015 (December 31, 2014 - $154) under accrued
liabilities in its interim condensed consolidated statement of financial position. The Company has recorded interest expense of
$nil and $nil, for the three and six months ended June 30, 2015 (three and six month periods ended June 30, 2014 - $310 and
$651, respectively) and $556 and $990, respectively, was recorded in mine under construction for the three and six month
periods ended June 30, 2015 (three and six month periods June 30, 2014 - $653 and $1,157) in relation to the bank loans. All
bank loans mature within 12 months.
Good luck to all...enjoy the ride.
Hi Lib:
How many shares did you let go of yesterday?
Sorry to see you go Lib. You have been here since before me. Live well.
Next couple of days I believe we can go to $.21-$.22 I believe Goldmoney...as posted earlier today.
A lot of positive divergences showing up here. those that wanted to make a quick buck buying just before Q2 earnings are getting stopped out here IMO.
I agree on the buying opp Lib.
Cheers.
$.21-$.22 next few days...
Anyone selling now was getting in just before the Q2 EPS for a quick hit and did not get it. Investors are eyeing this buying opportunity.
Broadening bottom forming on the daily charts...$.21-$.22 coming soon. IMO...
Daily chart is showing 3 lower lows on less momo. I guess I have to buy more. Even Keyo and Dream should be buying here.
A lot of positive divergences showing up here too...
Good day all...
I received a response for clarification on the trucks and transport available to get the tonnage stacked/built up for Namoya commercial production.
It appears that 9 Volvo 40T trucks were purchased in June. This is in addition to the CAT777's that are being put to work as they are available. I could not figure out how the tonnage and stacking was going up in late June when the CAT777's were just getting into action now thru Sept. 2015.
Here is Mr. Jones' response.
I appreciate the truck fleet issue is a bit confusing. There are 3 fleets – our original 5 Bell 40Ts, the 9 Volvo 40T trucks acquired in June and the 7 CAT 777 vehicles (100T), which have been slowly arriving and will be fully operational in September. The first two can haul 80T an hour and the latter 200T an hour. We will have an excess of trucking capacity to offset any breakdowns and take care of any maintenance requirements.
Enjoy the Ride...Coach T
I think it is Uncle J. As posted here yesterday.
Those BV numbers make sense to me braised.
A close above $.225 today would make for an interesting chart pattern on many time frames for BAA...IMO
Sounds good. If $.20 holds in here next day or two...I could see an inverse H&S forming on BAA.
I think for that book value I will let the short term guys flip and flop. Maybe grab a Marq with lots of Grand Marnier and listen to the conference call. I think it will be an interesting one.
I think the conference call will give us the reason(s) that the insiders were buying in June. GLTA
Cheers.
Anyone calculate the new book value after reducing long term debt by $40MM??
I had about $2.80 approximately. Any one else?
When is the last time that BAA had $9MM in cash and $1.8MM in gold inventory and $40MM less in long term debt??
The $200MM long term debt is what keeps the PPS down IMO.
Nice BAA.
How about the bids and asks on ARCA that are always for 8300 shares. What is that? Usually about $.01 apart. Playing both sides?
Daily chart on BAA just cannot look much better IMO...pivot point at $.25. has to be one of the only gold stocks above 200 day MA with 50 day MA right above.
Running out of sellers .24
Energy and the resource stocks look like they are done selling for a while to me. Moved the last bit of my 401k in to energy and natural resources. Whew!
Do your own DD baby!!
Good day all:
Been out of town and just got back. Looks like we are in the eye of the pre-earnings Q2. All is quiet on volume and players are eagerly awaiting the Q2 numbers.
I look forward to not only the Q2 but the upcoming Namoya news and Q3.
Best of luck to all. Interesting moves by China to say the least.
Go BAA.
$2.895 on NUGT purchase. Did not buy alot just enough.
Higher High on DUST with less momo...on two hour charts. Lower low on less momo on NUGT I going to Buy some NUGT here. $2.91. Do you own DD.
As usual Tex spot on.
Looks like ABX is bracing for their earnings report after hours.
Hi All:
Tough last few days around the gold pits and BAA. The last I had heard about earnings was mid-August. Has anyone heard an update to that period?
Only thing I can see is the potential for a lower low on less momo to the $.1898 from the last drop eh? Which maybe just happened.
Go BAA. News would be nice.
Keyo:
Are you selling your DUST today? It looks like it.
We know from the production release on the 8th that Namoya was at stacking rate of 5000 tonnes a day heading to stacking rate of 6000 tonnes.
I think 6000 Tonnes is the goal right? So they are in the hunt...
Tex:
Can you recall when the current management team came to BAA?
Late 2013 or Early 2014?
Mid-August is 2nd Quarter financials.
Namoya commercial production is coming sometime in the 3rd Quarter also we believe.
Ruh oh. DUST does not look so good.