I tend to disagree, I think for the lenders, it’s a bit like...

I tend to disagree, I think for the lenders, it’s a bit like going “double or nothing” when you’re down to your last $50 at the casino.

Had the lenders not extended additional credit, it seems likely the company would have been placed into administration and everybody would have lost. By extending a small amount of credit, there is a chance to turn things around and mitigate their losses.

However, if/when this money runs out, that will be it. We saw a similar thing with Kalium Lakes - NAÏF extended them an additional $10m in early 2023 to sort out their problems, but six months later when the business couldn’t deliver on production improvements, NAIF wouldn’t extend more money and put them into administration.

STA are now on a burning platform to turn things around in the next 4 - 6 months otherwise it’s lights out.