Schu - its not as silly as it might seem.
The market is usually right on these things.
You are correct re the 'lifeline' to production. And that is indeed a positive.
But what then? Once they have repaid Blackrock and built Stage 1 (with a capacity up to only 700K lbs/annum) they will be out of money. Much of the $6M working capital raised here will be gone by the end of next year - especially if they have to use the debt facility at a whopping 15% coupon rate!
Where does the $115M come from for Stages 1 and 2 - which are critical for profitability (in order to defray opex over a sufficient quantity of product). There won't be any operational surplus from the current 200K annual contracted sales - or from higher amounts (if and when additional offtakes are signed) unless the sales are for amounts well over $60/lb.
As I have already posted, without a significant rise in the U price, there will be a significant cap raise requirement before the end of 2015. And until such a rise occurs, the breaks will be firmly on (notwithstanding the potential for P&D's)
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Open | High | Low | Value | Volume |
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12 | 335375 | 0.078 |
3 | 214935 | 0.077 |
2 | 146100 | 0.076 |
14 | 771966 | 0.075 |
Price($) | Vol. | No. |
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0.080 | 209499 | 4 |
0.081 | 280001 | 3 |
0.082 | 416696 | 4 |
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