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.
