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clock Created with Sketch. 07/06/24
22:54
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Originally posted by mondyinvest:
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Agree with that. Starting to feel like they might turn a corner, but also conscious there's always some sort of surprise in the wings. But if they can get through the rest of the quarter without having to tap the market, and show some solid cash build then things might be looking up. The caution here is the line in the quarterly that said: "Capital expenditure is forecast to be ~15% above guidance because of continued boxcut capitalisation of Ellensfield Southanticipated to be achieved in the June 2024 quarter YTD they were already at $88M for capex spend, with full-year guidance at $70-80M. It is a bit hard to interpret the outcome here because if you take the midpoint of full-year guidance ($75M), their YTD spend is already 17% above this... so how are they "forecast to be ~15% above guidance" when they've still got one quarter of capex spend left to account for?
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Take the top of the capital spend range of 80M and 15% above that is 92M. They have spent 88M so forecasting another 4M on ES for this qtr. They indicated the strip ratio was now down to 5:1 so it’s doable. I recall somewhere reading the majority of the box cut was completed.
(20min delay)