If that happens next quarter LYC will be in serious trouble with creditors and employees. They wont have the positive cash flow to reliably pay salaries or meet upcoming debt payments!
I wonder if they could even pay the transport companies and power bill to keep it all rolling?
Without finding the extra cash somewhere IMO it may all come to a screeching halt! What you seem and many seem to be forgetting the cash outflow will be unrelenting and prior to the cash inflows from sales and clients.
It is entirely probable that none of the income from the last month will be in at the end of the quarter and only some of the middle month.
Given your own figures it is very likely that LYC will only have around 5million cash remainingt and they need much more than that to survive and meet debt servicing obligations!
The problem is time and timing IMO. They don't have the time or cash to ramp up that slow! They need to be above 2250ton/qtr rate to have any chance and even then they will need cash from somewhere to keep going after the last update!
Why do you think the SP is sitting at 21cents as I type? As I have said a few times even before the last update unless the result for the last update was at least 2000tons/qtr there is an adverse fiscal event coming for lyc. They are out of cash and time IMO
LYC Price at posting:
21.0¢ Sentiment: None Disclosure: Not Held
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