Yes looking over the Piedmont Report and ' cross analyzing ' some of the statements to that of Information already put out by Sayona , my FIRST observations are those which bring me back to the CASH components of the closing NAL acquisition as reported from Piedmont's perspective. My SECOND observations will have to be left to another post.
So in terms of my FIRST observation , It is indeed Interesting that as at end of June they ( Sayona ) had cash balances of A $34,964,000 as reported in their 5B on 20th July.
Subsequent to that , they obviously received $50 million ( $45 million + $5 million ) from the original SPP PLUS a further $15 million bringing the total shareholder's component of the SPP to $20 million.
Note that also during the the period from 30th June to NOW , the company has raised further amounts of working capital from various placements and conversion of Options amounting to $3,350,690.90.
Now I'm not sure if Management has included the conversion of OD options notice submitted exactly on 30th June because in their June Quarterly cashflow statement , they state they have recorded proceeds of only $53,000 from conversion of options when there are at least 4 notices ( 2 on the 10th June , 1 on the 15th and 1 on the 30th ) with the one on exactly the 30th being for 2,267,442 OD's for a total of $68,023 just on its own.
So the total PROCEEDS from option conversion that I have is a figure of $80,043.73 and NOT the $53,000 they have either not included or allocated incorrectly to the appropriate category in the June 5B cashflow.
So according to Piedmont's release of its Accounts today , they appear to have include the ' ALL UP ' CASH costs in Canadian Dollar terms of the acquisition of C$97,90,000 verses what was disclosed in Sayona's June Quarterly reports of C$94,361,000 cash (plus other amounts advanced under the DIP until closing) .
So it would appear that the further amounts advanced under the DIP up until closing was an amount of C$3,539,000.
Therefore irrespective of this possible oversight and assuming they have not made a mistake and their isn't a further $68,023 needing to be added to the September Qtr cashflows due the missing 30th June proceeds from the OD's the CASH balance as at now or end of September should look something like this.
There is also the seemingly irreconcilable difference to what Sayona had stated in the 5B as to what was raised in the 1 for 6 rights issue in April / May of ' around ' $21.96 million the $5.8 million which was further drawn upon from the Acuity controlled placement which was also as a result of 95 million shares being issued exactly on 30th June or the end of the Quarterly reporting period together with what Piedmont states in their Annual report in regards to their US$5 million ( approximately A$6,756,756 ) which was given to Sayona in JUNE ( as Piedmont says ) for its 25% stake in Sayona Quebec. So to me that equates to a figure of more like A$34.5 million across the TWO categories in the 5B of " Proceeds from issues of equities securities ( excluding convertible debt securities ) " at 3.1 of $ 25.312 million and " proceeds from convertible debt securities " at 3.2 of $2,843 million.
So effectively there is a difference in my mind which is NOT reflected in the June 5B of between $ 5.501 and $6.618 million and depending on whether you deduct the transaction cost due the issued of these two categories which you would thenk that you would.
So essentially to me it looks like the $5.8 million whilst NOT reflected as an ' unused ' finance facility at 30 June is NOT included in the closing cash balance at 30 June due the fact that the securities were only issued on 30 June and most likely that the case from Acuity was received AFTER on the 1st or 2nd July.
This means that we could ADD another $5.8 million PLUS that $68 thousand of OD's also processed on the 30th June but most likely NOT received.
There is also the matter of WHERE is our NAL acquisition Deposit of between $4 and $5 million being recorded and is this in fact ALSO yet to be shown as a reduction in our final closing settlement costs of C$73.4 million.
So if we are going to go on the basis that there is a further $5.8 million ueet to be added into the Cash Balances available PLUS a further $4 million to be ' offset ' on the settlement , we could see a Cash on Hand figure ( pre QTRLY expenses ) of something like this :-
Opening CASH balance as shown in the June 5B of $34,964,000 ADD the $5.9 million from acuity and the not recognized conversion of the OD's at 30th June , ADD the $65 million raised in total from the SPP , ADD the $3,350,691 of ' Other ' placements and options conversions in the September QTR , LESS the Sayona share on ' closing ' of the NAL transaction of C$73.4 million ( A$78.925 million ADD the offset of the NAL deposit of ( estimated ) $4.5 million - and you arrive at a closing Cash Balance at end of September before any Quarterly operations , admin or exploration costs of $34,789,961 .....or only a couple of hundred thousand less that what they started off the September QTR with. Even at worst if you reverse the $4.5 million deposit offset and take off the $5.9 million from Acuity controlled placement and OD options conversion on 30th June , you are left with a Cash on Hand ( pre expenses ) of around $24,389,691
Now assuming that General Admin and Operations expenses including Exploration costs remain the same as the June QTR at around $2.5 million , we would still be left with at worst a Cash Operating balance of $21,889,.691 and at best a balance of around A$32,289,691
So not bad when if you consider that we can close at more or less the same Cash balance we started with or at least just over $20 million - And ALL of this after picking up mining assets in excess of C$400 million for a CASH cost of our share of $79 million mining asset.
Yeah , so quite a handy position and not a bad starting point to be in with potentially Cash Reserves starting balance of between $20 and $32 million.
(20min delay)