this is quite dour indeed.
1. Flavio should go. This announcement and the suspension extension note reeks of poor financial managment and planning. I have no doubt he was as complicit as Luke in feeding tripe t the masses;
2. The reported $20m facility is only available if the build an airport (or maybe a road upgrade) in which case if it's available likely to be at least fully consumed in that construction. It is mischievous I think to omit this caveat.
3. With 2 above in mind and given the age of the cash flows reported, my sense is that STA is financially brittle even allowing for the subsequent $15->$20m shipment. One of the things about mining in remote places is that your costs are by and large fixed ... you will run x DMU's, you will operate y WCP's, you will have z employees on site and will consume a PJ's of energy. Not much wiggle room to tame costs which look to be tracking somewhere north of A$25m / qtr. Can you see the squeeze?
The conceptual size of the capital raise is what pricks my imagination. Faaaarrk!
- Forums
- ASX - By Stock
- STA
- Ann: Request for Extension of Voluntary Suspension
Ann: Request for Extension of Voluntary Suspension, page-10
-
-
- There are more pages in this discussion • 3 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add STA (ASX) to my watchlist
(20min delay)
|
|||||
Last
9.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $138.9M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
STA (ASX) Chart |
Day chart unavailable