You were bang on the $ re getting an update any day! But I still...

You were bang on the $ re getting an update any day! But I still think they’re gonna need to raise again this year. The ANN says they have to make a $2.5m upfront cash payment for the landfill works, and the processing volumes they’ve disclosed (400 cubic metres per day vs 1400m capacity/per day = 500K cubic meters pa) are unlikely to have cover operating costs pre-COVID (let alone once lock down measures depress volumes further). Time will tell with the 4C but I’m expecting their $10m balance will less than half that at June 30.

This company definitely has a governance issue though. I called out the materiality of the related party transactions at the time of IPO and it’s happened here again with the contract award. This is one of my major sticking points, though I’ll continue to wait and watch as I do like landfill assets and I could see M8 getting taken out by one of the bigger players when it’s got some traction so still interested in getting involved.