Ann: ASM signs agreement for sale of NdFeB alloy, page-140

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Kaddles

543 Posts.

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17/05/23

20:42

Post #: 67830268
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Originally posted by bedger: ↑

This company does not need a capital raise....for the time being. It's well cashed up from the November raise.

It raised $30 million on the November 2022 raise
It received $0.5 million from the NSW Government Critical Minerals and High Tech Metals Fund Stream 1
It received $11.1 million from the retail SPP
It received $10 million from the NSW Government Critical Minerals and High Tech Metals Fund Stream 2
(ASM admittedly then contributing $10.4 million of $20.4 million estimated for road and bridge upgrades)

Its closing cash position at the end of March was $63.1 million. It used $8.8 million in the quarter. $6.3 million in operating losses, $2.3 million in exploration and evaluation partially offset by $0.4 million in government grants and an additional $0.2 million in debt payments.

Its got another $8 million in undrawn debt facilities.

It does not need a cash raise, AS LONG AS, it gets what everyone is crying out for, off-take sales to add to the crappy $0.9 million receipts it received in the 1st calendar quarter, producing a modest 15 tonnes of NdPr. The 100 tonne US contract was the first real step in the right direction (to add to the small 10/12 tonne Korean contract).

The consensus seemed to be $20 million a year in revenues from this, $5 million a quarter, a drastic improvement on the <$1 million for 1Q CY22.

Just so I am not accused of ramping, this obviously a long way short of the "Ramp up production of NdFeB alloy to 600tpa, aligned to sales" in 1H 2023, as guided in the Bell Potter presentation in February. But they did at least live up to their promise (for 1H 2023) to "Secure first sale NdFeB alloy"

Just 500 tonnes to go....but seriously enough with the CR scaremongering. There is no immediate need for a CR, or in the next six months, or in the next year, providing it begins to begin to deliver the 600tpa production/sales guidance in contracts, and use some gross profit to reduce that cash burn.

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From a conservative view I'll be happy to see BAU corporate costs covered and incremental surplus, investable revenue thereafter. With the latest US agreement, I can't see any CR for core operational BAU.

ASM Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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