I presume our cash position is going to be very poor. We failed to replace the funds for the following items: Buying 100% of the project for 10m. Expanding the BFS to 20mtpa for 12.4m.
I believe the company relied on the LDA facility for these additional expenses. Unfortunately, as we know the LDA facility was a disaster. It caused more expenses and provided very little net cash flow.
To date, we have still failed to replace those funds which resulted in using Regal to pay for the LDA fees. I believe a lot of our issues came from not fully understanding the LDA agreement and deviating from the original plan.
I'm looking forward to seeing a solid announcement to see the future direction. But one thing is certain, we will need more funds.
HIO Price at posting:
9.7¢ Sentiment: None Disclosure: Held
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