CAP need cash to pay wages and exploration drilling. Exploration drilling is expected to cost $9M in the financial year of 10/11. Hawsons won't provide cashflow until production starts in 2014. So CAP have 3 more years of development to account for before Hawsons will well and truly fund the company's future endeavours.
2. Where will the cash come from?
As of November, CAP have $16M in the bank. In March 11, BMG will transfer $25M to CAP on the completion of the PFS at Hawsons. On completion of BFS at Hawsons, BMG will transfer $23M to CAP. BMG will also be expending $28M directly into the feasibility studies at Hawsons. Hawsons will start producing cash flow for CAP at some stage in 2014 when mining begins.
CAP Price at posting:
88.1¢ Sentiment: LT Buy Disclosure: Held
