At the last balance date (31/03/2008) they had over 8mil in cash with an average burn rate of 1mil per quarter.
The burn rate will increase as they expand the drilling and BFS programs but they have plenty of cash to at least get to year end.
Any funding requirements will be satisfied during the debt raising phase for Einasleigh/ Chloe and the mix will depend on capital markets at the time. The level of equity raising may not be as great as expected by many as Customer demand for resource may enable other hybrid funding to be utilised (see FMG history for an idea on this).
Tolhursts last valuation (May 2008) forcast an EPS of 30 cents+, this implies we are on a forward PE of less than 1. Normal miners trade at 8 and so execution/ market risk premium is enormous and way out of line.
Buy and hold, expect news in next 10-15 trading days
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