AGM, page-151

First 151 Last

Share
Profile

Follow
Alterego1168

1,525 Posts.

17

16/04/17

00:50

Post #: 24087573
Share

Originally posted by Alterego1168 ↑

Who said anything about upfront of $500M or $376M USD required ? I was pointing that it was not fully funded and therefore would require CR, hence there was talk about CR vs Debt, and I believe that consolidation of the shares is in preparation for future dilution. Which is why (in one of my earlier post) I would ask what is the purpose of Consolidation 5:1 ????

This may or may not end up listing on HKSE in order to draw in new investors but ultimately, it is about raising cash, therefore CR and dilution. Could debt be an option? sure... but I reckon they rather use the cash to develop SDV than pay the banks and CR (from GXY point of view) is probably a better way to go than JV if they want to keep 100%.

Let's see how one of my scenarios plays out

US $376M required between 2017 - 2019 (with first small production in late 2019)

$850USD per tonne on 160,000 from Mount Cattlin
Opex: US $350 per tonne (though it could go as low as $300 per tonne as they improve efficiencies at Mount Cattlin)

Net Cash: US $500 per tonne on 160,000 tonne = US $80M

US $80M x 3 years (2017-2019) = $240M

Leaves US $136M shortfall or $180M (AUD @ 0.75)

Expand

One of the brokers ran an estimate - but using $470M as capex and funded with 50% debt.

Regardless of how it's cut. There is a sizable shortfall which requires to be funded either through Debt, CR or JV.

GXY Price at posting: 42.5¢ Sentiment: Sell Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

MKG

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

MLS

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

ENV

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

VUL

Vulcan appoints investment bank and M&A veteran to board

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

ASN

Utah authorities sign off on Anson's lithium extraction plans at Green River

MM8

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

AZY

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

NAM

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

There are more pages in this discussion • 319 more messages in this thread...

First 151 Last

Add GXY (ASX) to my watchlist

AGM, page-151

Top Stories

Mako sniffs gold at 170 g/t at Cote d’Ivoire's Napié play

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Vulcan appoints investment bank and M&A veteran to board

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Utah authorities sign off on Anson's lithium extraction plans at Green River

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Featured News