But for $100 million in debt they pay this as interest (if not more), therefore there is no real income for ECU after interest, right?
Not sure about that. Where are you getting $100 million in debt? The latest financial statement that we have (Sep '09) indicates about $21 million on the term loan and mineral concession liability. From the financial statement..
In August 2009 the Company restructured its long term debt facilities with its principal lender. The amount outstanding at the time of the restructuring of $15,750,000 US Dollars, together with an additional amount of $868,541 US Dollars representing interest due, were consolidated into a new loan of $16,618,541 US Dollars.
As at period end the Company owed $17,793,472 ($16,618,541 US Dollars). No principal repayment is required until November 30, 2010 following which principal will be repayable in equal monthly instalments for 12 months.
Interest is payable quarterly and is calculated at the greater of 12% and 1-month London Interbank Offered Rate plus 6%. The effective rate of interest on the loans is 12.8%. The loans are secured by a first mortgage covering the current mining properties of the Company's Mexican subsidiaries, except the San Diego property, as well as the current and future facilities constructed thereon.
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