The question is - if the funding deal gets sorted for the...

The question is - if the funding deal gets sorted for the expansion, does it include some $$ to operate the 2ktpa plant for the next “little while”, until it becomes effectively self-sufficient via product sales???

If yes, or if we don’t need that, then great.

If no, then afaik we will be relying on our remaining cash to fund everything “non-expansion” related, and whether that is feasible really depends on how the ramp-up pans out and how our sales unfold.

Afaict we probably have circa AUD$7-8M in the bank at the moment. Circa USD$5M…?
This might be enough to get the product flowing at a decent rate, and if we sell product in say 100t lots for circa USD$2M, then we should be ok if we can do that say once a month or thereabouts….
…and we probably have a few months to get to that point, before the funds get tight.
So, imo I won’t be that surprised if - in the case that the funding deal, whatever that may look like, is for “the expansion only” - we raise some additional $$ to allow a buffer in the scenario described above.

The other option, which I think is more likely and effectively has the same outcome but doesn’t strictly separate specific amounts for S2/S3, would be that there is some “combo” funding arrangement that includes money, as/if required, to bolster general working capital i.e. it can also go towards the 2ktpa plant opex etc as required, depending on how the ramp up and sales timing goes and how long our current $$ last.

Fwiw I reckon $10M would easily fund a few extra months, if required, including opex for say 100t per month…. But I don’t think we are desperate for that just yet; so perhaps it is raised in due course - hopefully at a higher sp of course - to minimise dilution.
Imo if we raise anything significantly more than that (eg. Anything near our limit that does not require shareholder approval), it will be part of the “combo” deal mentioned earlier.


Just some thoughts to ponder.

Get the plant humming in the next couple of months and it’s just the expansion funding, imo.

As always, we’ll have to wait to find out, but I don’t see how it’s particularly terrible either way, considering where we are at today, and despite us all wanting to be here many months ago!
We are at the pointy end now. Finally.



Imo
Dyor