In addition to super-low input costs, Monument has the
luxury of huge tax incentives. This allows for operating
costs in the lower quartile of industry average, and thus excellent
cash flow to bolster the treasury (annualized OCF of
about $70m at the increased production rate). As of its latest
filing, MMY had working capital of $49m ($21m in cash).
On the financing front MMY has been careful about overdiluting
its shareholders. Following its initial equity financing
to fund the Selinsing build, MMY had only received C$12m
via warrant exercises up until its brand-new multi-tranche
financing that has so far raised C$22m (to fund Mengapur).
As for debt, MMY does have some. And unfortunately it
comes with a bit of hedging. Its August 2010 financing involved
a combination of convertible notes and gold forward
sales. And interestingly the notes came with gold option
agreements and a gold inducement ($1000/oz to $1200/oz).
Thankfully these all add up to only $14m of non-current liabilities
on the balance sheet, definitely not a showstopper !