I think the market is 'bothered' about the cash position given...

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Sjlasx

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26/07/19

21:05

Post #: 39717545
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Originally posted by Rick19: ↑

Yep, thats one of my main concerns too. Lets assume we achieve upper end (or best case) production guidance of 40kt in Q3, its based off an allocated $42M in forcasted production costs. That's over $1,000per tonne cost of production. Last qtr we achieved a selling price of $1078AUD so just covering costs once royalty taken out etc...
Then we've got the additional 15M outgoings for the rest of the quarter too.

I think its this stat alone has triggered the sell off.

Surely the market cant be that bothered with our cash position because a concession has to be made re our stockpile at the end of the Q2...

This is why i was hoping for C&M until either:
- spod market picks back up and we sell spod profitably again
- JV is finalised and ready to go with decent volumes 10k p/m
- 2nd / 3rd offtake binding, fines up and running, lowering production costs etc..

Cant help but feel that keeping the plant operating at full tilt as proposed in the qtrly will do nothing much else other than deplete both our cash reserves and eating into our remaining LOM.

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I think the market is 'bothered' about the cash position given A40's financiers moved forward the $15m debt covenant. What triggered that change in terms?
Couple the timing of that change with projected cash outflows above $57m for the quarter and a poor market outlook for spodumene shipping.
AIMHO

A40 Price at posting: 8.8¢ Sentiment: Sell Disclosure: Not Held
4 Upvote

1 Great analysis

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