Went by the Liberty booth on Monday. No doubt the company is really trying to improve its image. When I asked about the debt and how it would be dealt with I never got any real answers. Told to look for the year end annual report for more info. Then yesterday I see why nothing was discussed about the debt. An extra $5,000,000 had to be loaned to see the company through to operating. Just what you want to see happen during PDAC.
Not a surprise to see this happen (again). The $20,000,000 loan was chewed up as predicted in no time.
I have no doubt the company will start producing again with the millions being thrown at it. Anything is possible. The timeframe according to their own time chart showed production to start in mid Q1. Well we're getting near the end of Q1 so things better start soon. All ready falling behind their own schedule.
The CEO states they will produce 4,000,000 pounds of nickel this year. Thats only $36,000,000 in gross revenue. That does not deduct the nsr and Xstrata processing fees. So even if operating costs come in at $30,000,000 this year theres still not much room for manoeuving on the $40,000,000 debt coming due in less than 10 months. And they want to develop Hart at the same time? Somethings not going to add up.
I suspect Jilly will have to step in again and continue extending the debt. Or takeover the Redstone mill and start charging Liberty for processing as some way to get back their money. It does seem that the Chinese thumb screws are starting to tighten. This may be Liberty's last kick at the can to make things work. Still a lottery ticket IMO.
Best
