The AUD v USD 21st September A$0.6694 = FX 1.492 = US$1,000,000 = A$1,492,000 26th September A$0.6539 = FX 1.529 = US$1,000,000 = A$1,529,000 Difference of A$37,000 per every US$1,000,000 x (average) operational quarterly costs of US$35,000,000, but those quarterlies also included a lot of the work that has been suspended. ~ equates to an added amount of A$1,295,000 for the quarter.
Gold US$1,700oz (recapitalisation presentation) 26th September US$1,623oz Production for August of 8,122oz ~ 8,122 x US$1,700 = US$13,807,400 ~ 8,122 x US$1,623 = US$13,182,006 ~ equates to a difference of US$625,394 less gold revenue for the month.
Swings and turns: Currently the POG is US$1,674 which would which change the gold revenue upwards by US$414,222 for the month Current A$0.6275 = FX 1.533 = US$1,000,000 = A$1,533,000 a further A$4,000 per US$1M cost
Mota-Engil has/had 203 projects world wide, 7 of the current projects are mining related works similar/same as to the contract to Morila SA. Out of that total of projects, I can find only 1 instance of Mota-Engil entering into a partnership/JV? (road construction in Kenya) - not saying it isn't a alternative possibility for Mota-Engil to enter into a Joint Venture, but highly doubt it.
In the scheme of things, the above cost/profit variations are somewhat trivial, but I don't subscribe to the notion of Firefinch has been distancing itself in preparation to exit the Morila Mine. I haven't joined the "money has gone" brigade as yet, only based on my previous post/s that have a optimistic bias but confident I supported the bias outlook with the content of the posts.
@petere How much do we actually owe MEIM? Given the information in the Placement Announcement, shares to the value of US$23,413,239 (A$34,932,555) calculated as at the 21st Sept. This is made up of; (1) outstanding amounts owed to MEIM by Morila SA under the mining service agreement; and (2) amounts that will become payable to MEIM under the mining services agreement over its current term in relation to monthly management fees to June 30th 2023.
From my understanding, (as ambiguous and information lacking the announcement is) point 2 is a calculation of monthly management costs? that will become owing for the period ending 30th June 2023 and not inclusive of earthworks, etc? ~ basing that on the size of the contract / 81months, equates to monthly contract outs at (circa) US$4.4M payable to Mota-Engil?
It is extremely frustrating that shareholders are expected to make decisions on basically limited information; I would be more comfortable if the company clearly defined the actual debt owing to Mota-Engil for services provided and what if any recompense was calculation for their underperformance and were clear on what included in the forward contract payments they were calculating by issuing shares. ~ I do not disagree in the conversion of debt to equity; but the board of directors have placed zero value on the Morila Mine and depreciated it to the point that the Leo Lithium shares (percentage ownership per sé) that Mota-Engil were going to have exposure to were a gift. ~ Mota-Engil shares may have been in escrow, but they still have voting capabilities. ~ Decisions of what Firefinch do with any divestment monies (if sold) when the Leo Lithium shares come out of escrow would of been influenced by Mota-Engil. ~ currently, if the Leo Lithium shares were sold and returned to shareholders, it would be at a ratio of 1 FFX - .179 LLL, if the proposed Recapitalisation had of proceeded, that ratio would be 1 FFX - .077 LLL.
I still maintain, that monies from the divestment of LLL shares (whenever that occurs) and if not used in any recoveries of debt by creditors in any VA/liquidation actions, FFX shareholders won't see a cent of it.
cheers
FFX Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
