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Teranga Gold Retires Balance of Loan Facility, Increases Cash Balance and Announces Second Highest Quarterly Production

TORONTO, ONTARIO–(Marketwired – Jan 8, 2015) –

(All amounts are in U.S. dollars unless otherwise stated)

Teranga Gold Corporation (“Teranga” or the “Company”) (TGZ.TO)(TGZ.AX) is pleased to report that it has retired the outstanding balance of its loan facility and increased its cash and cash equivalents balance to $35.7 million during the fourth quarter of 2014. Fourth quarter production totaled 71,278 ounces from its Sabodala Gold Mine in Senegal, putting full-year 2014 production results at 211,823 ounces.

Strengthened Balance Sheet with Retired Loan Facility and Higher Cash Balance

As expected, Teranga retired the outstanding $15.0 million balance of its loan facility (“Facility”) with Macquarie Bank Limited on December 31st. The Company began the year with $60.0 million outstanding under the Facility, of which $30.0 million was repaid on January 15th, 2014 with the completion of the streaming agreement with Franco-Nevada Corporation as part of the acquisition of the Oromin Joint Venture Group Ltd. The balance of $30.0 million was repaid in three quarterly $5.0 million installments, with the final outstanding balance of $15.0 million paid on December 31st. The Company ended the year with $35.7 million in cash and cash equivalents, an increase of $7.7 million over the third quarter cash and cash equivalents balance (including restricted cash).

Strong Quarterly Gold Production

Production was marginally lower than fourth quarter guidance primarily due to slightly lower recovery rates than planned. The fourth quarter saw record quarterly mill throughput of 1,009,038 tonnes milled contributing to the second highest quarterly production of 71,278 ounces. Ore was sourced from both the Sabodala and Masato pits, with soft ore from the recently developed Masato pit contributing to higher throughput rates. Gold production of 71,278 ounces during the fourth quarter of 2014 was 47 percent higher than third quarter production in 2014, and 36 percent higher compared to the same prior year period. Full year production of 211,823 ounces represents the second highest production total in Company history.

Fourth Quarter and Year-End Results Release

The Company will release its 2014 fourth quarter and year-end operating results for ASX listing purposes on Thursday, January 29th, 2015, after market close in Toronto. A conference call and webcast will be hosted following the release with access details to be available on the Company’s website. Full 2014 fourth quarter and year-end financial results are expected to be released during the week of February 16th, 2015.

ABOUT TERANGA GOLD

Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TGZ.TO) and Australian Securities Exchange (TGZ.AX). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.

Teranga’s mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.

[…]

Extra interest-free loan for sugar mills to pay cane arrears

New Delhi, Jun 23 (PTI) : The Union government on Monday decided to provide additional interest-free loan of up to Rs 4,400 crore to cash-starved sugar industry for paying cane arrears.

In order to bail out sugar mills that are unable to pay Rs 11,000 crore dues to sugarcane growers, the government also decided to increase the sugar import duty to 40 per cent from the existing 15 per cent and extend subsidy of Rs 3,300 per tonne on export till September this year.

Efforts will also be made to ensure 10 per cent ethanol blending with petrol.

These decisions were taken at a high-level meeting called by Food Minister Ram Vilas Paswan following the Prime Minister’s direction.

The Principal Secretary to the PM, Nripendra Misra, and Cabinet Secretary Ajit Seth were also present in the meeting.

After the meeting, Paswan said: “We have taken four key decisions. We have decided to extend the interest-free loan given against excise duty paid by sugar mills for five years instead of three years.”

Mills can avail themselves of additional interest-free loans of up to Rs 4,400 crore from banks, he said, adding that this will improve their cash flow to make cane payments.

The minister said the department is yet to calculate the exact interest-free loans to be provided to the industry.

In December, the Centre had approved Rs 6,600 crore interest-free loans for the sugar industry exclusively for clearing sugarcane arrears. It decided to give loans via banks equivalent to the excise duty paid by the mills in the past three years.

“These decisions will be announced subject to the condition that mills give guarantee that they will clear Rs 11,000 crore sugarcane arrears at the earliest,” Paswan told reporters.

”We don’t have any problems to announce these incentives formally if millers are ready to make payments. If they give assurance today, we will announce incentives today itself.”

He said some of the decisions would be notified by ministries concerned, while some require the Cabinet nod.

Besides Paswan, Transport Minister Nitin Gadkari, Commerce Minister Nirmala Sitharaman, Petroleum Minister Dharmendra Pradhan, Women and Child Development Minister Maneka Gandhi, MSME Minister Kalraj Mishra, among others, were present in the meeting.

Besides interest-free loan, Paswan said, “We have decided to increase the sugar import duty to 40 per cent from the current 15 per cent and extend the sugar export incentive of Rs 3,300 per tonne till September this year.”

Paswan said that the Petroleum Minister has assured 10 per cent ethanol blending with petrol. Currently, ethanol blending is not even two per cent.

Expressing concern over mounting cane arrears, Paswan said, “While the Centre fixes the cane price, some states are fixing higher prices that are putting burden on millers. There should be a holistic view on pricing.”

The sugar industry has been facing a cash crunch due to higher cost of production and lower selling prices in the wake of surplus output over the past few years.

Currently, sugarcane arrears stand at about Rs 11,000 crore across the country, with the maximum of Rs 7,200 crore in Uttar Pradesh.

Mills say they are facing a cash crunch as domestic prices have slipped below the cost of production, hurting their profits. They also fear domestic prices could fall further if cheaper imports are not curbed.

[…]

Wells Fargo Home Lending Launches “What Makes A Home” Contest

DES MOINES, Iowa–(BUSINESS WIRE)–

Wells Fargo & Company’s (WFC) home lending division announced today that it will give away three $250,000 cash prizes to three contestants who submit, in words and images, their answer to the contest question: “What makes a place feel like a home?” Consumers can learn more and enter the contest online at www.wellsfargo.com/homecontest.

To be eligible, consumers must submit a complete mortgage loan application for the purchase of residential real estate with Wells Fargo Home Mortgage between April 1, 2014 and August 31, 2014. Mortgage applications are not required for contestants in AZ, CO, IA, MD, MN, NJ, ND or TN.

“Today’s interest rates make it a good time to buy a home,” said Greg Gwizdz, Executive Vice President and National Retail Sales Manager with Wells Fargo Home Mortgage. “Consumers who are ready to purchase a home may be working with their local realtor to find a home. We hope that they will also start a conversation with one of our home mortgage consultants to complete a loan application and submit an entry for the chance to win $250,000.” Winners may use the money to pay down a mortgage, renovate, decorate or spend their winnings however they choose.

Contest entry is through the website only. To enter the contest, contestants must describe, “What makes a place feel like a home,” using words and a photo or a 30-second video. An independent panel of judges will review each entry and select three $250,000 winners based on the uniqueness and sincerity of the answers, among other criteria. Wells Fargo will announce the winners online at the contest site.

Wells Fargo is launching the contest during the spring home buying season to give anyone who completes a Wells Fargo purchase loan application, where applicable*, from April 1through August 31, the chance to win.

“A home loan is one of the largest financial transactions many Americans will ever make,” said Franklin Codel, Executive Vice President and head of Home Mortgage Production. “This contest allows Wells Fargo to add something special to the excitement and joy of having a place to call home.” Additional information about the contest is available through Wells Fargo Home Mortgage Consultants, REALTORS or homebuilders in your area. The website is www.wellsfargo.com/homecontest.

* Only purchase loan applications are eligible except for contestants who are residents of AZ, CO, IA, MD, MN, NJ, ND or TN, where no loan application is required. Applications for home equity loans, refinancing or loan applications from other lenders are not eligible to participate in the What Makes a Home contest. Wells Fargo employees and joint venture partners are not eligible to participate in the contest.

About Wells Fargo

Wells Fargo & Company (WFC) is a nationwide, diversified, community-based financial services company with $1.5 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 locations, 12,500 ATMs, and the internet (wellsfargo.com), and has offices in 36 countries to support customers who conduct business in the global economy. With more than 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives and stories are also available at blogs.wellsfargo.com and at wellsfargo.com/stories.

Banking & BudgetingLoansWells Fargo & Companyloan application Contact:

Wells Fargo & Company

Media

Vickee Adams, 515-213-4610

Investors

John Campbell, 415-396-0523

[…]

Payday Loans – Do High Fees Imply High Profits? | Easy Payday …

Image payday-loans-6.jpg

Whether a company earns too much or too little cannot be analyzed only by multiplying the fees they charge with the amount of products they sell. The costs of the production, distribution, etc. need also to be taken into account. The same happens when it comes to analyzing payday loan lenders’ profits…

Every company wants to obtain a profit and no one that is acting commercially will lend money out of the goodness of his heart. Yet, lenders dealing with low risk clients and offering regular personal loans with the proper credit verification processes for approval charge lower interests or fees. Thus, there must be a justifiable reason for the high fees charged by payday loan lenders.

What Kind Of Customer Requires Payday Loans?

This is an important question because the niche that lenders address with payday loans is a very particular gap of the financial market which is not filled by other financial products. Payday loans are meant to help those who run into an emergency situation and need the funds to cope with it. They are short term loans, carry small amounts and high fees as explained.

The problem is that those who need financial assistance for such emergencies obviously do not have the savings that they would need to face it. And though it is possible that some unexpected situation may cause that lack of savings, chances are that the one seeking a payday loan for such purposes has a null savings capacity and consequently either a low income or high expenses (or most commonly both).

The Risks Involved In The Transaction

So, what is to be expected of such customers? Truth is that the market analyses show a very high default ratio. Thus, simple math rules that high fees are needed to ensure any kind of profit. If I charge $1 every $100 (12% APR) I would get $1000 in profits every 100 customers borrowing $1000. But if 10% of the borrowers default on the loan, I would be losing $9000.

Instead, payday loan lenders may charge $10 every $100. With the above example and a 10% default rate, they would still make no profit at all. Yet, payday loan lenders have more customers, charge additional fees and make use of different methods to reduce the default ratio to a minimum. They do what every company does: minimize loses and maximize revenues.

Payday Loan Lenders Are Not The Devil

Now that we have de-demonized payday loan lenders, we should explain how payday loans are correctly used because if there is a devil and it is not the lender, it surely is the misuse of payday loans.

Prior to applying for a Badcreditloanservices.com payday loan you need to be absolutely sure that your income will make repayment feasible. If you have doubts about your upcoming income (whether it is your salary or other source) you should refrain from requesting a payday loan.

But most importantly, payday loans should never be used as a regular supply of funds. They are meant for emergencies and thus, they should be used exceptionally and only as a last resort. If due to your credit, you can not apply for other kind of loans, make sure to obtain assistance to repair your credit and cut on your expenses so you will not need to use payday loans as a usual source of financing.

[…]

Another Automaker With A Federal Loan Blames Its Failure On The Fisker Fiasco

Thumbnail

VPG Autos

VPG Autos’ MV-1 van.

The ex-CEO of a now-defunct automaker that received a federal loan said his company would still be in business if the government were not afraid of backlash like that following the failure of electric automaker Fisker.

The automaker, Vehicle Production Group (aka VPG Autos), produced the MV-1, a six-passenger, wheelchair-accessible van than can run on gasoline or environmentally-friendly compressed natural gas.

It raised $400 million in private equity, and received $50 million under the Department of Energy’s Advanced Technologies Vehicles Manufacturing Loan Program (ATVM) — the same program that gave loans to Fisker, Tesla, Ford, and Nissan.

Under the terms of its loan, VPG was required to keep a certain amount of cash on hand. When it fell below that level, the DOE froze its assets on February 29. VPG was forced to cease operations, and laid off all but three of its 100 employees, including former CEO John Walsh.

Walsh, who served as CEO from March 2012 to February 2013, told Business Insider that his company was healthy, having already delivered 2,500 vans and secured orders for thousands more.

But the company ran into cash flow problems after it temporarily halted production to retool for a new model that would allow wheelchair users to drive themselves.

VPG had sold the cars in its inventory, and with its source of revenue gone, it needed about $50 million to restart production. VPG had already drawn down the full $50 million from the DOE, and was not looking for more federal assistance, Walsh said.

The company was in talks with multiple private investors to secure that money — but had trouble “ironing out terms,” according to Walsh, when its cash reserves dropped below the allowed level and the DOE stepped in, effectively shutting everything down.

“It Has Everything To Do With Fisker”

Walsh knew VPG’s cash reserves were low, and he had hoped for an extension from the DOE. It was not an unreasonable expectation: Fisker obtained an extra $32 million in government funds after missing a production target, according to the AP.

But after problems began with Fisker, which eventually had its loan frozen and may be headed for bankruptcy, the DOE tightened the rules for awarding loans under the ATVM program, the Detroit News reported.

VPG Autos

Production of the MV-1 van.

Walsh believes the department was also overcautious in applying the rules of the loan it gave VPG, at the cost of the company.

“I think the DOE has made a major error with this company because of the pressures of the Fisker situation, and that is unfortunate,” he said. “It has everything to do with Fisker.”

The DOE and the Obama administration have been heavily criticized by Republicans over the Fisker failure, and for giving more money to a company already in trouble. Fisker received $192 million of the $500 million it was offered under its loan.

At an April Congressional hearing titled “Green Energy Oversight: Examining the Department of Energy’s Bad Bet on Fisker Automotive,” Rep. Jim Jordan (R) of Ohio called the DOE loan program “one of the most disastrously mismanaged and corrupt programs in U.S. history.”

Walsh is clearly annoyed by comparisons of VPG with the electric automaker.

“Fisker is an electric sports car,” he said. “Who needs an electric sports car, other than Justin Bieber?”

“There is a need for what we build, and not a need for an electric sports car,” he added.

The Lost Promise Of VPG Autos

Most vehicles for wheelchair users are conversion vans: regular vans retrofitted to accommodate disabled users. In contrast, VPG’s MV-1 is designed from the ground up to be a mobility van, which makes it more durable, reliable, and cheaper, Walsh said.

VPG Autos

All VPG needed was an extension until April to get production going again and start delivering cars it had taken orders for, said Walsh, adding that paying back the DOE “wasn’t going to be a problem.”

In an email to Business Insider, a DOE spokesperson defended the track record of the ATVM loan program:

Our losses are on track to be a small fraction of the loan loss reserve Congress established to cover expected losses, and we are helping valuable new technologies gain a toehold so that America can win the global race for clean energy jobs.

While he believes the DOE was overcautious in handling VPG’s loan, Walsh said he did not regret accepting the federal funds.

“I don’t think you should ever sit back and regret anyone that’s giving you assistance,” he said. “It was an excellent investment. It just needed a little bit more time.”

More From Business Insider

Another Car Company That Got A Federal Loan Is Shutting Down
The Failed Electric Coda Sedan Was One Ugly Car
House Republicans Slam Federal Loan To Fisker As ‘Corrupt’ And ‘Mismanaged’
[…]

Another Car Company That Got A Federal Loan Is Shutting Down

Thumbnail

VPG Autos

VPG Autos’ MV-1 van.

A small automaker that received a $50 million loan from the Department of Energy (DOE) has laid off nearly all of its staff and ceased operations,

USA Today reports

.

The Vehicle Production Group, aka VPG Autos, produced the MV-1, a six passenger wheelchair-accessible van that can run on gasoline or environmentally-friendly compressed natural gas.

It stopped operations after the DOE froze its access to federal money, when its finances fell below the threshold required by the loan, according to Bloomberg.

The DOE “wanted us to get the remaining capital raised and we couldn’t get it done,” former CEO John Walsh told USA Today.

The problem, he said, was not lack of orders for the MV-1, but cash flow.

The small automaker has not filed for bankruptcy.

The loan was approved in March 2011, under the DOE’s Advanced Technology Vehicles Manufacturing program, created by the 2007 Energy Independence and Security Act to allocate $25 billion to fund highly fuel-efficient vehicles.

Other loan recipients include relatively successful Tesla Motors and defunct Fisker Automotive, which is in deep financial distress.

According to the DOE, the $50 million for VPG should have created 900 permanent jobs and taken 12,200 tons of carbon dioxide out of the atmosphere annually. The automaker was supposed to build as many as 22,000 vehicles every year (counting compressed natural gas and gasoline models).

Just six months ago, VPG seemed to be in solid shape. Between September 2011 and October 2012, it produced over 2,500 MV-1s, more vehicles than Tesla made in the same period, according to John Voelcker at Green Car Reports.

A Department of Energy spokesperson did not respond to a request for comment, and calling the phone number listed for VPG Autos led to an “after hours voicemail system.”

More From Business Insider

House Republicans Slam Federal Loan To Fisker As ‘Corrupt’ And ‘Mismanaged’
The Electric Car Is Dead All Over Again
Tesla Just Hired The Man Who Created The Best Aston Martin Ever
[…]

you regularise online payday loans you true » Hellofor facebook …

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[…]

Tronox Announces $1.3 Billion Term Loan Commitment

STAMFORD, Conn., Feb. 26, 2013 /PRNewswire/ — Tronox Limited (TROX) today announced that it has received a commitment for a new $1.3 billion senior secured term loan provided by Goldman Sachs, UBS, Credit Suisse, and RBC Capital Markets.

(Logo: http://photos.prnewswire.com/prnh/20051118/TRONOXLOGO-a)

The funds will be used for general corporate purposes and/or potential strategic alternatives. Following completion of this financing and prepayment of its existing loan in full, Tronox will have approximately $1.3 billion in cash on its balance sheet. The new financing is targeted for completion by the end of the first quarter.

“By refinancing the remaining balance of our term loan, Tronox is capitalizing on a favorable credit environment and putting ourselves in a stronger position to deliver on our vision to double profits by 2017,” said chairman and CEO Tom Casey. “The $1.3 billion in cash empowers the company with the operational and strategic flexibility to grow and create value for our shareholders.”

About Tronox

Tronox is a global leader in the production and marketing of titanium bearing mineral sands and titanium dioxide pigment. Through the integration of its mineral sands and pigment business, the company provides its customers a dependable supply of brightening solutions for a variety of end uses. For more information, visit http://www.tronox.com.

Explore how Tronox’s fully integrated strategy is reshaping the industry. Learn more about Tronox’s bold vision.

Forward-looking statements

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management’s current beliefs and expectations and are subject to uncertainty and changes in circumstances and contain words such as “expected,” and “anticipate” and include statements about expectation for the use of proceeds from the sale of the senior notes. The forward-looking statements are subject to obtaining any necessary approvals, market conditions, including the price of our shares of common stock, and are need for liquidity, and opportunities that may arise. These forward looking statements are also subject to risk factors discussed in the company’s filings with the Securities and Exchange Commission (SEC), including under the ‘Risk Factors” section of our registration statement on Form S-4 filed with the SEC on May 4, 2012.

Media Contact:
Bud Grebey
+1.203.705.3721
Bud.grebey@tronox.com

Investor Contact:
Brennen Arndt
+1.203.705.3722

[…]

Fitch Assigns 'BB-' Rating to Chesapeake's $2 Billion Term Loan

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings has assigned a ‘BB-‘ rating to Chesapeake Energy’s $2 billion unsecured term loan due 2017. A full list of ratings appears at the end of this release. The Rating Outlook for Chesapeake remains Negative.

Proceeds for the term loan will be used to pay off the remaining balance on the company’s existing $4 billion term loan and to reduce borrowings on the company’s $4 billion revolver due 2015. The term loan will enhance liquidity and will help to bridge funding needs as the timing of some of the remaining planned 2012 asset divestitures may roll over into early 2013.

The ratings on Chesapeake reflect the company’s leverage relative to reserves and production,

offset somewhat by the sheer size of its asset base and operating profile. For the quarter ended Sept. 30th, Chesapeake’s balance sheet debt was over $16 billion compared with approximately $11 billion as of year-end 2011. The company’s strategy to transition to more liquids production is underway; however, weak natural gas prices this year have still had a negative impact on financial results. More than three-quarters of the company’s current production remains natural gas. The weak price realizations for natural gas combined with aggressive spending in 2012 to accelerate liquids production has resulted in negative free cash flow so far this year of slightly over $10 billion, some of which has been offset by asset sales and monetization to date. For the quarter ended Sept. 30, adjusted debt (which includes preferred equity, non-controlling interests and other Fitch calculations such as future lease operating expenses related to volumetric production payment [VPP] agreements, etc.) to flowing boe per day was approximately $35,000/boe/d and its adjusted debt/proved developed reserves(PD) was over $12/PD.

The Negative Outlook reflects the funding issues the company faces while it transitions to an increased emphasis on liquids production amidst a weak natural gas pricing environment. Negative free cash flow in 2012 is expected to be largely funded by asset sales and monetizations. However, fiscal 2013 may also be significantly free cash flow negative if aggressive spending plans are maintained. Closing of the remaining planned 2012 asset sales in a timely fashion with proceeds used to reduce debt balances combined with a balanced 2013 capital program that does not heavily rely on asset sales/monetizations or debt issuances could result in the Outlook returning to Stable. Remaining planned divestures for 2012/early 2013 may total as much as $6.5 billion which could be used to significantly reduce debt balances relative to current levels.

Liquidity is provided by the company’s $4 billion secured revolver and expected proceeds from planned asset sales/monetizations. Maturities are relatively light in 2013 with only $464 million due and $1.6 billion due 2015. Chesapeake has a significant amount of debt that can be prepaid in the near term without a call premium. Key covenants are primarily associated with the secured revolver and include maximum debt-to-book capitalization (70% covenant threshold) and maximum total debt-to-EBITDA. The revolving facility was recently amended so that the maximum debt-to-EBITDA is 6X at Sept. 30; 12.5x at Dec. 31; 12.4.75x at March 31, 2013, 4.5x at June 30, 2013, 4.25x at Sept. 30, 2013, and 4x thereafter.

Fitch rates Chesapeake as follows:

–IDR ‘BB-‘;

–Senior unsecured notes ‘BB-‘;

–Senior secured revolving credit facility ‘BBB-‘;

–Convertible preferred stock ‘B”.

In addition, Fitch has assigned the following rating:

–$2 billion senior unsecured term loan ‘BB-‘.

The Rating Outlook remains Negative.

WHAT COULD TRIGGER A RATING ACTION

Positive: Future developments that may, individually or collectively, lead to positive rating action include:

–Material progress in deleveraging the balance sheet relative to reserves and production;

–Much stronger cash flow generation leading to consistent and significant positive free cash flow generation.

Negative: Future developments that may, individually or collectively, lead to negative rating action include:

–Negative free cash flow leading to rising debt levels relative to reserves and production;

–Marked decrease in production levels or proved developed reserves relative to debt.

Additional information is available at ‘www.fitchratings.com‘. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Relevant Research:

–‘Corporate Rating Methodology’ (Aug. 8, 2012);

–‘Rating Oil and Gas Exploration and Production Companies: Sector Credit Factors’ (Aug. 9, 2012);

–‘Updating Fitch’s Oil & Gas Price Deck’, Aug.15, 2012.

Applicable Criteria and Related Research:

Updating Fitch — Oil & Gas Price Deck — Midyear Update

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648586

Rating Oil and Gas Production Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682334

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

Contact:

Fitch Ratings

Primary Analyst

Sean T. Sexton, CFA

Managing Director

+1-312-368-3130

Fitch, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Secondary Analyst

Dan Harris

Associate Director

+1-312-368-3217

or

Committee Chairperson

Mark A. Oline

Managing Director

+1-312-368-2073

or

Media Relations:

Brian Bertsch, +1-212-908-0549 (New York)

brian.bertsch@fitchratings.com […]

Tesla shares rise as company says production grew

DETROIT (AP) — Shares of Tesla Motors Inc. rose more than 3 percent Monday as the electric vehicle maker said it was now making enough cars to generate positive operating cash flow.

But the Palo Alto, Calif., company’s third-quarter net loss grew almost 70 percent, to $110.8 million, or $1.05 per share, compared with a loss of $65.1 million, or 63 cents per share, a year earlier. Revenue was $50.1 million, down 13 percent from a year earlier. Excluding one-time items such as $12.5 million in stock-based compensation, the company lost 92 cents per share. Analysts polled by FactSet expected a loss of 89 cents per share on $55.7 million in revenue.

The company said it transitioned to a mass-production car company during the quarter, growing from making five cars per week to 100 cars per week. In the current quarter, it is building more than 200 Model S sedans per week, or 10,000 cars per year, and it expects to double production again in one month to 400 cars per week. The company said it delivered 253 of the Model S in the third quarter and 68 Roadsters, and it increased sales of powertrains to Toyota to run the electric RAV4 small SUV.

“We are now at a production rate capable of generating positive operating cash flow,” the company said in a statement.

Production of the Model S was hampered during the quarter by parts supply issues, which the company said Monday had been resolved.

Tesla, the brainchild of PayPal billionaire and SpaceX founder Elon Musk, now has two all-electric models on the market, the $109,000 Roadster and the new Model S, which starts at $49,900 after a federal tax credit. The Roadster is being phased out as the Model S goes on sale. Tesla has lost money since sales of the Roadster began in 2008, and the company is banking on the cheaper Model S to expand its market.

Tesla said it finished drawing on a $465 million loan from the U.S. Department of Energy during the quarter. The company has made two $15 million loan payments before they were due, spokeswoman Christina Ra said. The payments are due in December and March.

The company also said it finished the quarter with $109 million in cash. This includes short-term restricted cash to make the first loan payment due in December, the company said. It also said it raised $222 million in an equity offering just after the quarter ended.

Research and Development costs rose to $61.9 million last quarter, up 14.5 percent from a year ago. The company maintained its 2012 revenue guidance of $400 million to $440 million and said it expects to deliver 2,500 to 3,000 Model S cars to customers in the fourth quarter and 20,000 next year. Analysts expect full-year revenue of $408.8 million. Tesla expects to get to positive free cash flow by the end of the fourth quarter.

Shares of Tesla rose 91 cents, or 3.2 percent, to $29.83 in Monday morning trading. They have traded in a range of $22.64 to $39.95 in the past year.

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