They have 2 conventional leases, one for 5M and the other for 4M. Conventional leases probably means there is a 10% buy back at the end of the period. I tried to get Peter to tell me the interest rate but no go. So I did my calculation with at 10% interest rate which may be higher than the rate they have safe from a calculation standpoint.

For the first lease of 5M, their monthly payment would be 135k plus a balloon payment of 500k at the end of the 42 months

For the second lease of 4M, their monthly payment would be 109k plus a balloon payment of 400k at the end of the 42 months

So that would be 242k per month payment. They are slated to do 60k ounces this year, remove 10k for the first six months of production from SJ and now they should be producing 50k ounces over the last 6 months. This is 8.3k ounces per month at about $700 net of mining revenue for 5.8M. Their loan facility is a gold loan where they will be ramping up the amount of gold per month that they are repaying. In the beginning, the amount is not very onerous from what I remember, I will post that schedule of payment once I find it.

However, between this gold loan repayment and these new leases, I believe we are still in a very good position to deliver great cashflow and profits in the not so distant future.

CMM remains one of my 3 favorite plays despite the SP at this point. I think a few people will be surprised by the update this week.

Glorieux