Burgundy Diamond Mines (ASX:BDM) has paid out its convertible notes totalling US$23.6 million ($34.5 million), reducing its overall debt.
The announcement highlights Burgundy's focus on strengthening its financial position, leveraging existing cash reserves to facilitate this move.
"We had several options for our convertible notes, and we believe this was the best way forward for the company. We are pleased to take this major step in further strengthening our balance sheet," commented Kim Truter, CEO and Managing Director of Burgundy Diamond Mines.
"The fact we have opted to pay this out in cash highlights the strength and belief in our business and our optimism in the diamond market."
Non-executive Chairman Michael O'Keeffe added, "Despite being a countercyclical acquisition, the tier-1 nature of the mine and infrastructure has generated around $196 million in EBITDA during the first 12 months of operations. This is providing flexibility to both de-lever the balance sheet and develop the resource base to extend mine life."
The convertible notes, issued in September 2021, paid a 6% coupon rate and were convertible to ordinary shares at a fixed price of $0.264.
The payout, completed on Sept. 20, marks a significant milestone for the company, further solidifying its market position. Burgundy’s remaining debt stands at roughly US$74 million ($108.4 million), due by June 30, 2026.