Thanks so much for the clarification, after I realised my...

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Dezzydodo

86 Posts.

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13/05/24

21:20

Post #: 73805244
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Originally posted by tropic: ↑

Dezz,
They are to produce minimum of 1000 tonnes of Mg/ year so that's about 1700 tonnes of MgO that eventually would be reduced to Mg ingots. That equates to about 195kg of MgO/hr.

I think their announcement was premature - they are not in production mode, they are still in commissioning mode. When they are filling one ton bags, that's when they are in production mode.

They could have titled it as "Ore Commissioning Completed" evidenced by the 200kg of MgO and the next step is to move to production filling one ton bags. As Rick had suggested a line of one ton bags with purity and extraction efficiency would have had a much greater impact and would have been much more attractive to high-end investors thus pushing up the share price further for a decent capital raise. I hope they didn't announce production early so they could move to a quick capital raise - that would be disasterous. The financial position of the company is a big unknown and will be interesting for the next quarter - they will be keen to include the CR in the quarterly and end of year financials.

Anyway, it seems the plant components are doing what they are supposed to do which is good news, now we just need to have them work on optimising the operating parameters for volume and quality.

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Thanks so much for the clarification, after I realised my blunder I had no idea where to start calculations as I hadn't the slightest idea on the conversion rate of mgo to mg.
As for funding I agree a capital raise is imminent and timing could be up shot creek regarding current share price and how much of the plant is completed.
Im still a strong hold as you stated everything works as it should and nothing blew up (touch wood) People need to remember this is a world first technology and is going to have teething issues.
Let's hope to see a truck load of 1 tonne bags been sent to Rain storm soon.

LMG Price at posting: 5.8¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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