nrc
My understanding is that it is SDJ SA that will need the financing which will essentially come from the JV partners as it has largely been done for stage 1. ORE share of 190Mil is around 126Mil. Given that the last ORE cap raise left 85 mil on the balance sheet (not sure what it is now), and there is an expectancy of 104mil coming back onto the balance sheet over the next 2 years the 126mil ORE share should be able to be accommodated without ORE raising further capital or borrowing externally. I am assuming here that JEMSE will pay it's way and not expect to be free carried.
As an aside, I do not expect ORE to technically make a profit until FY19 as the cash flow will be debt repayment and go to the balance sheet not the P&L. Whether ORE makes a "profit" after FY19 will depend on how much SDJ SA retains for stage 2 and how much is distributed to the JV partners. This is something I would certainly like ORE management to spell out for it's shareholders.
P
ORE Price at posting:
$3.94 Sentiment: Hold Disclosure: Held
