I just re read this ann to check once again on our cash position - JV funding and LLL working capital.
It is clear that a major point of the discussions is the Mali Duties and Taxes which we were supposed to be exempt from under the old mining law.
LLL say that the JV is well funded to production and have allowed in the cost estimate $US50 mill in duties/Taxes. This is a very material sum of cash and the temptation was obviously to much for Mali to resist.
See page 3. Well worth a reread.
All US $
Pre production CAPEX $318M
Mali Taxes/Duties 50
Total JV funding required $368mill US$ Worst case scenario as discussions being held re
uties/taxes
Funded by US$
Initial JV cash $130
JV Debt 40 ($10 mill already drawn)
GF extra 5% share of JV 137
GF funding share 33
LLL funding share 27
(LLL cash balance 3th June $US43 mill leaves $US17M = circa $A25m working capital to production)
Total funding to JV $368mill US$
Hopefully no unexpected costs from here. Although so far everything pretty well on budget.
At LLL operating costs per quarter of circa $A3mill and a projected $A25 mill cash = circa 2 years of funding. In theory we should be ok.
The above reflects costs of the JV to completion, sources of funding and projected cash remaining to fund LLL to production as per page 3.
The Quarterly as at Sept 30th shows a cash balance of circa $68 mill. A refund of $A7.7 mill refund is due from GF for their share of drilling costs,
So if we remain on track with no big unpleasant surprises we should be ok.
What are the chances of getting some relief from the $US50 mill Duties/Taxes? I must admit to be totally peed off with this issue.
IMO its worth being in suspension to have a crack at sorting this out.
I bet GF are heavily involved in discussions with Mali.
(20min delay)