hi JG
Thinking through the figures..............
Contract for road, box cut and tailings treatment facility was $6.6m. Still going so not fully paid for.
$3m deposited for enviro bonds.
That's a total of $9.6m. Can you help me out with the other $11m and what announcements those figures were cited in? Ta.
According to latest release, pre-production capital of $80m. Assuming that wouldn't include costs of vehicles etc. Also have to take into account the operational loss / negative cash flow during first 12 months or so (Will take 18+ months to get to annualised production of 50k oz. According to previous releases).
Consequently probably looking at a figure of $90 to $100m so the loan won't be enough.
Kangaroo Flat stuff might mitigate the costs to some extent but not much. Current estimate is $5m if it is used.
No mention still of where the concentrate will be processed and the costs associated with that.
Re the loan. There are still a lot of unanswered questions such as what the LTV rate is. So what POG will trigger an obligation to prepay / payback the loan (during the first 3 years)? What are the hedging arrangements and what effect will that have on the cost per ounze? What is the interest rate of the loan?
Hopefully the company will release more details ASAP so that we are not in the dark.
The way things stand though, the company is going down a track that will necessitate / force a capital raising. Bum.
Also, I continue to find the the senior management structure curious for a company of this size. 2 mine managers, operational manager, strategy manager and CEO. I guess that means that they are still intent on expansion given the reference to pursuing further commercial opportunities in the annual report......... More capital requirements / share issues
I would prefer that they sort current matters first.
Still, hopefully all of this will be clarified before the AGM.
Cheers
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