Ann: Production Update, page-14

I guess the upshot is that at 50% production at best there is unlikely to be a significant income stream to cover expenses. Is the plant even profitable at 50% output when efficiency often depends on scale of production? And most importantly, will the upgrade or subsequent operation until sales are made require additional capital raising and dilution, and with all these issues arising, is the loan facility still progressing ok? If all the loans are confirmed then we should see some recovery, but with that uncertainty there, and some doubt as to whether the wind back in production is related to process issues or market conditions, the current SP might be about reasonable. It is certainly a lot riskier proposition to be in VXL now than it was when they floated at 20c, partly because they haven't been able to get the plant operating at historical volumes and quality (goodness knows why), and partly because of the apparent decline in graphite prices globally.