Contango Converts Remaining Hedge Contracts into Debt
Contango Silver & Gold amended its credit facility to convert the remaining 15,000 ounces of hedged gold into $33.0 million of debt, effectively removing the ceiling on its future cash flows from gold production. The total principal of the credit facility increased to $46.3 million from $12.6 million, while the interest rate was reduced to approximately 7.40% from 8.9%.
Key figures
- Avg hedge strike
- 1935
- Put options cost
- 715000
- Interest rate new
- 7.40%
- Interest rate old
- 8.9%
- Put options strike
- 3100
- Hedge maturity range
- March to June 2027
- Conversion debt amount
- $33.0 million
- Hedge ounces converted
- 15000
- Principal repayment dec 2026
- $1 M
- Principal repayment jun 2027
- $28.8 M
- Principal repayment mar 2027
- $15.5 M
- Principal repayment sep 2026
- $1 M
- Total credit facility principal new
- $46.3 M
- Total credit facility principal old
- $12.6 M
AI analysis
Red flags2 · Pro
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.