Re: Repaid Debt
in response to
by
posted on
Sep 01, 2010 07:21PM
Producing Mines and "state-of-the-art" Mill
Thanks Legend for trying to discuss the company's issue of debt. Better than the other stuff thats off topic (on anything).
No, I was not refused any loan. I just wish my bank would wave my mortgage payments when ever I wanted to. But that option is something I would not want to do anyway as the principle, as we are seeing at Liberty, is building as the debt accrues.
I don't plan on mortgaging all my properties in the hope of producing cash flow. As far as Money Mart goes, I think this company has already been down that road with the New York Hedge Fund if I recall.
I will admit my mortgage rate is much much lower than what this company is borrowing funds at. So that indicates where the risk really is.
As far as Liberty holding back cash, well thats my point. There is none as of June 30th. And I'm sure you saw the release about building a road to Hart. It just seems that there is a balancing act of further develop cost vs paying down any debt. And from Carmen's comment its clear the debt due in August and probably soon this month will not be paid. That was a goal - again - of this company to pay down its debt in Q3&4 was it not? Looks like Q3 plan is falling behind already.
So it can be assumed that any positive cash flow from McWaters (if any) is only covering the cost to produce and being applied to capital projects. Its just too bad to see McWaters being gutted and its nickel sales only being applied to keep the company existing at best. Good if your an employee.