Shifts spending towards accelerated growth strategy
On June 24th, 2010, TVIRD made the final loan payment for US$3.97 million. In addition to the principal prepayment amount of US$3.97 million, accrued interest, advisory fees and a premium for the right to make the prepayment brought the total cash payment made by TVIRD to US$4.58 million. Through negotiation with the lender, the company was able to reduce the premium for the right to make the prepayment by half for this final payment.
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TVIRD’s Sulpide Plant in Canatuan, Siocon, Zamboanga del Norte. The full payment of the company’s term facility enables TVIRD to focus its energy on extending the mine life at Canatuan, as well as on accelerating the Balabag gold project program and advancing exploration initiatives at Tamarok.
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In order to facilitate the timely repayment of the term facility, the company has acquired an additional short-term loan from one of the top local Philippine banks bearing an interest rate of 4.5%, much lower than the original debt facility. Of the US$4.58 million paid, US$2.58 was from cash flow and US$2.0 was from the short-term loan.
Reduction of debt cost
"Operating efficiencies, rigid cost control, a dedicated operations group and favorable copper prices have enabled us to execute on one of our key strategies, that of decreasing interest costs," said Cliff James, TVIRD Chairman. “Reducing debt costs has enabled us to improve our balance sheet substantially, resulting in a significant improvement in our financial condition.
Shift gears to growth
“With the elimination of spending constraints outside of our control, we are now able to accelerate the shift in our spending directly to our growth strategy. Our primary focus is to extend the mine life at Canatuan, which we are doing by targeting exploration in near-mine areas. In addition to that, we are accelerating the program on our Balabag gold project and advancing our exploration initiatives at Tamarok."