Hi Reiner, its all explained in the cap raising slides. I think most of the operating costs would be needed to maintain raw materials supply and ramp up production. At full production the plant eats a shipping container of spodumene per week. With a profit margin of 1,500-2,000 per ton Li2CO3 they expect EBITDA $25m-$30m per year (less 7m admin costs).
The plan is:
Refinance bank debt on a lengthened maturity profile that more closely matches operational cash flows (ie 3-5 years).
Restructure the convertible bonds on more favourable terms aligned with operational cashflows.
Pursue non-producing asset sales to pay down debt.
They need a hard nosed army general for MD and a scrooge bean counter until things improve.
GXY Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
