All one can really say to that is…how about some punctuation.. so it readable? Still going with the quantity over quality strategy?
Anyway..I spent a bit of time yesterday constructing some forward cashflow projections (happy to share with those interested).
If cap raises and loan funds come in as expected (minus fees), and the build is close to budget, and they maintain current GP margins, they should be left with around $2.5m at 30 June 2023…assuming the plant doesn’t kick off production before then, which could improve it further.
It’s not the perfect scenario, as it would be good to keep the cash balance above $3m, or they’ll possibly cop some extra interest from Pure until it’s corrected (but I don’t see that as a big deal).
They did also pump a big increase of funds into working capital last 6 months ($800k to $2.8m) so could draw on that a bit to prop it up if they really need to.
Bottom line is that no one will care once the plant is up and running, as they should be cashflow positive within a month or two (to the tune of $2m per month).
So to me.. the biggest risk is unexpected delays, let’s see if they can stay on track, and get it built by June 2023.
CG1 Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
