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
