Agree, how they finance the mine going forward is the big one.
I don't see dilution as inevitable. Personally I find leverage the more palatable option at this stage (why issue shares at around 20c when they'll soon be worth >70c?).
Last year GXY announced a loan facility for $30m at something like 16% all up; this wasn't to develop anything, it was just to roll over existing debt. It was one of the reasons I got out (at some profit, but something I regret now as their SP hasn't looked back). I don't think we'll need to pay anything like those rates. With a payback period of 1.7 years (PFS, pg.6) @ $494/ton (PFS, pg.8) and with the Middle Kingdom's SOE involved in a reasonable loan facility and a realistic price for 6% concentrate, debt would be more than manageable.
AJM Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
