Flash note No Images? Click here New Century Resources (ASX:NCZ) has announced the signing of a legally binding, conditional term sheet, for a US$45m (~A$58m) debt facility with global resources fund Sprott Resource Lending (Sprott), relating to the recommencement of production at their Century Zinc Mine in Queensland. Highlights of the announcement include:
Analyst comment: To receive a debt financing offer with favorable terms prior to the completion of the Re-Start Study, is a vote of confidence from Sprott, one of the worlds leading natural resource financiers, and again highlights the exceptional potential of the Century Mine. Being able to potentially draw down this facility prior to the end of the year, should allow for production to recommence earlier than originally anticipated (TSI revised estimate - mid 2018), which will also allow for greater exposure to the current record high zinc price. We maintain our production guidance at 216,000t of zinc metal per annum (12Mtpa throughput), which would make the Century mine the sixth largest zinc operation globally (2016 annual production - SNL). Based on our zinc price assumption of US$1.30/lb, this would deliver an EBITDA of around A$480m pa. The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions. Valuation: We maintain our valuation for New Century Resources at $3.03/ share, as the size and terms of the debt facility were largely in-line with our previous estimate. The information contained in this message and any attachments may be privileged and confidential, and is intended for the exclusive use of the addressee. If you are not the addressee, any disclosure, reproduction, distribution, on-transmission, dissemination or use of the communication is strictly prohibited. Please be advised that, whilst attachments may have been checked for viruses, you should rely on your own virus-checking software and procedures. Customer Notice Conflict of interest Publisher Note |