They won't go 2.7 quarters without needing more cash.
They are undertaking a detailed feasibility study, a drilling program and other capital expenditure as outlined in previous announcements. The purpose of all of this is to raise capital via debt (appointment of Rock and preliminary work with NAIF), plus other bankers, to build larger infrastructure plant & equipment requirement.
This will provide them with the scale and equipment needed to produce the 200 to 300 tonne a month of tungsten.
This quarter cashflow is not representative of what this company is planning to do. You only have to read the announcement to see how much planning, testing and trials are still being undertaken.
One thing we know for sure. The feasibility study being carried out will be working with hard data as EQR has operational processes in place and not just "ïmagining" what would happen on a green field site. This was one of the things that was emphasised in Chris Brown's broker report from Morgans.
EQR Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
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