Shares of Equinox Minerals Ltd. (OTC:EQMIF) got a boost on Friday after the company announced that it signed a new loan facility for $80-million. It will allow the company to meet the additional capital requirements related to an electrical fire at its Lumwana copper mine in Zambia.
Dundee Securities analyst Mike Collison said in a note:
We take the terms of this loan to be [a] strong vote of confidence in Lumwana’s production profile and cost estimates. With production imminent, the lenders [are] likely see little construction risk remaining.
Equinox continues to expect project commission in December 2008.
Mr. Collison said he is impressed with the fact that banks are putting their confidence in the future of the copper market and Equinox’s place in the cost curve.
Mr. Collison said:
These banks appear to have a more optimistic view of the future than the current equity market. We are voting with the bankers on this one.