Thought I start a thread to discuss AMAL announcements on the SGX (
http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements) and articles in the media (lots of coverage in Singapore).
Looking at a recent announcement 11/04/17:
http://infopub.sgx.com/FileOpen/20170411 Recent Joint Ann withTawana Clarification Final.ashx?App=Announcement&FileID=447767
"Tawana had on 3 April 2017 released their presentation material titled “Investor Presentation Advancing Towards Lithium Production” (“Presentation Slides”) on the ASX website in conjunction with a presentation to investors in Sydney made by Mr. Mark Calderwood, the Managing Director of Tawana.
AMA was not involved and did not attend this presentation in Sydney with Tawana."
So it wasn't a joint AMAL/Tawana presentation (also AMAL logo wasn't on the slides), and it only focused on Bald Hill project. IMO seems like a CR is on the horizon for TAW, most likely to fund the rest of the $20M expenditure required for 50% buy in on Bald Hill (I'm thinking around $13-$15M, as we had ~$7M at end of last year).
From the
Canaccord analyst:
"Firm capital cost estimates remain subject to completion of the feasibility study, but it is understood that initial Phase 1 capex will be A$30-40m, including plant construction, site costs and initial mining.
It is anticipated that total capital requirements (including working capital to first cashflow) will be in the order of ~A$55m."
IMO Tawana won't be able to fund the total capex (~A$55M) for Phase 1 by itself, so AMAL will have to chip in too with a CR (according to their
Half Yearly results they had cash on hand of ~A$3.3M). The pre-payments by off-takes will help reduce dilution for the JV partnership. Or we could just seek some of this funding from the banks.
