Hi El Jefe, think they just need to show the market they can actually deliver it and SP should start pushing higher, in particular delivering those significant reductions in costs. After the drawn out merger disaster, lack of ships for shipping, change to Off take arrangements and also the water issues from last quarter they may need to get a few runs on the board to restore confidence.
Not sure why everyone is concerned about CR, if the team can deliver what we are all hoping for then I have no doubt any Capital raising that may still be required would once again be well supported. What we don't want is a capital raising caused by further operational issues causing lack of funds. Capital raising for expansion projects is a different game all together imho. Wouldn't even be adverse to a pro rata rights issue to fully wipe out that debt, perhaps once they have a few runs on the board, still don't like the interest rate on the loan facility even though it is a bit better than the loan they extinguished. Perhaps if they are doing a raising for something else they could add that on and do a decent raising available to all holders, not just to the big boy sophisticates.
2nd offtake would also be nice, I think.
All just in my very humble opinion as always.
All the best.
A40 Price at posting:
19.5¢ Sentiment: None Disclosure: Held
