Yes, but wouldn't it be amazing if they pull it off with no external funding!
December quarterly priced Stage 1.5 upgrade at 25mln plus contingencies of another 15mln.
If phosphate rock price holds, and they continue shipping as planned, I think they would easily get a bridging finance facility post June quarter (even if it means paying 20% pa over the course of a few months). That's if NAIF does not come through.
Another thing is that there are 70mln options expiring at the end of December 2023 with the exercise price of 5c. That's another $3.5mln in funding.
I think the state of play with the share price at the moment is this. Optionholders are waiting for higher share price and volumes to exercise and fund the future exercise of options. Someone on the other side is using the uncertainty of Stage 1.5 to cap the share price, possibly through shorting. Today's volume was around 6mln shares, and that was large in comparison but still miniscule in comparison to the 70 mln options. Say if optionholders did not have funds to exercise, they would need to offload 30%of their holding to fund the exercise - approx 23mlm shares at current price. If price were at 50c they would need to offload only 7mln shares to fund the exercise of 70 mln options.
It's a mexican standoff I think, and they break out may potentially be violent...if all goes to plan to the upside.
CXM Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
