Why do we need to raise capital?EGR already has $46mil sitting...

Why do we need to raise capital?

EGR already has $46mil sitting in its bank accounts, by the sounds of it we will have an announcement in the not-to-distant future naming a EV manufacturer as an offtake partner once the small pilot plant has been constructed by mid 2023. I am fairly confident EFA will still provide its funding once the offtake partner is named.

BTW, Have you considered the likely CAPEX savings EGR shareholders could see building the plant in one hit rather than two stages?

Our BAM study indicated a CAPEX of US$72mil for the 20ktpa production facility (US$3.6mil per 1k tpa). We know EGR can produce at least 24ktpa by using the European shaping equipment. As you would know, another ASX-listed company has completed a BAM study, where their 28ktpa production facility was expected to cost US$63mil building it in one stage (US$2.2mil per 1k tpa),

Could EGR's CAPEX reduce from US$72mil down to US$63 mil? This would be a significant cost saving,

Or if you use the US$2.2mil per 1k tonnes for the peer (assuming 50% conversion) the CAPEX could be as low as US$44mil?

I am surprised by the significant difference in CAPEX between the two studies. US$1.4mil per 1k tpa seems like a significant difference when both companies assumed a 50% conversion. Is it more likely their CAPEX will be closer to US$100mil for the 28ktpa?

BTW, these calculations do not take into consideration the increase in cost due to inflation, shipping ect.