VSA Morning Miner, 16/07/20
NQ Minerals (OTCMKTS:NQMI)
NQ Minerals (OTCMKTS:NQMI) has announced it has reached an agreement with ING Bank N.V. to provide the company with a US$41m refinancing facility to assist with restructuring of the corporate debt that was originally taken on to start mining operations at NQMI's Hellyer tailings re-treatment mine in Tasmania, Australia.
The drawdown of the new facility which remains subject to completion of final documentation has a maturity of 6 years whilst carrying an interest rate of 6.5% plus US LIBOR (1 month). The facility also includes an accordion option to increase the amount up to US$55 million but remains subject to approval by the credit committee.
This new financing arrangement will allow NQMI to repay the project’s earlier debt and reduce the company’s loan repayments by US$2.5mpa as a result of a more stabilised operating environment in addition to the successful final commissioning phase at Hellyer which has a targeted throughput rate of 1.2 million tonnes per year. The agreement was facilitated by NQMI's concentrates off taker, Traxys Sarl who assisted with accessing the loan facility. In return Traxys gained an extension of its off take agreement from 2024 through to the end of life-of-mine and therefore provides NQMI with greater certainly regarding payments for the mine’s production.
We reiterate our Buy recommendation and 21p target price.
Oliver O'Donnell, CFA, Head of Research & Natural Resources Analyst | T: +44 (0)20 3617 5180 | E: firstname.lastname@example.org
Paul Renken, Senior Geologist | T: +44 (0)20 3005 5011 | E: email@example.com
VSA Capital Research | T: +44 (0)20 3005 5000 | E: firstname.lastname@example.org
VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com
This email is intended solely for the named recipient. It may contain privileged and/or confidential information. If you are not one of the intended recipients, please notify the sender immediately, and destroy this email: any disclosure, copying to any person or any action taken or omitted to be taken in reliance on this e-mail, is prohibited and may be unlawful. Any views expressed in this message are those of the individual sender, except where specifically stated to be the view of VSA Capital Limited, its subsidiaries or associates. Whilst all efforts are made to safeguard inbound and outbound emails, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any liability in respect of viruses or computer problems experienced.
VSA Capital Limited will use your personal information to administer your account in order to provide any products and services you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you provide consent to that effect.
VSA Capital Limited is Authorised and Regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England with company number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.
Please consider the environment before printing this e-mail
unsubscribe from this list update subscription preferences