Schu - its not as silly as it might seem.
The market is usually right on these things.
You are correct re the 'lifeline' to production. And that is indeed a positive.
But what then? Once they have repaid Blackrock and built Stage 1 (with a capacity up to only 700K lbs/annum) they will be out of money. Much of the $6M working capital raised here will be gone by the end of next year - especially if they have to use the debt facility at a whopping 15% coupon rate!
Where does the $115M come from for Stages 1 and 2 - which are critical for profitability (in order to defray opex over a sufficient quantity of product). There won't be any operational surplus from the current 200K annual contracted sales - or from higher amounts (if and when additional offtakes are signed) unless the sales are for amounts well over $60/lb.
As I have already posted, without a significant rise in the U price, there will be a significant cap raise requirement before the end of 2015. And until such a rise occurs, the breaks will be firmly on (notwithstanding the potential for P&D's)
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8.8¢ |
Change
0.001(1.15%) |
Mkt cap ! $286.8M |
Open | High | Low | Value | Volume |
8.9¢ | 9.0¢ | 8.7¢ | $367.5K | 4.150M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
21 | 370305 | 8.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
8.8¢ | 15097 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
21 | 370305 | 0.087 |
6 | 2292733 | 0.086 |
14 | 458521 | 0.085 |
10 | 369249 | 0.084 |
7 | 1501309 | 0.083 |
Price($) | Vol. | No. |
---|---|---|
0.088 | 21054 | 3 |
0.089 | 370675 | 4 |
0.090 | 110611 | 4 |
0.091 | 10000 | 1 |
0.092 | 41200 | 3 |
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