Here's my longer summaryCashflow $1m revenue (no breakdown) Net...

Here's my longer summary

Cashflow $1m revenue (no breakdown)

Net outflow for quarter $1.9m
Why?
- Lower quarry sales due to wet season.
- Costs from increasing inventory of quarry material for future sale (stockpiling).
- Purchase of capital equipment (one off costs)
- Established haul roads (one off costs)
- Appointment of consultants for feasibility, permitting, XRT sorter plans (one off costs).
- Feedstock mostly from low grade tailings, therefore lower tungsten production and lower grade gives lower price.
- Continued exploration costs

Other add back - Outstanding BAMA quarry contract $1m (product ready).

Summary - given the above. Not expecting to be cashflow positive.

XRT Sorter – still testing for the METS grant & feasibility study. The wet season slowed the throughputs.Significant work completed to establish the required haul roads and mining plan being developed from test results. To “maximise efficiencies to handle and process the material”. Permitting received during quarter will allow sorting operations to scale up.

Retreatment Plant - Production of tungsten is occurring with throughput increasing towards end of quarter as wet season abated. Mainly tailings but includes fines from stockpile and XRT ore-sorter concentrate. Still testing different batches from stockpile. The emphasis is they are still testing the stockpile material which is forming the feasibility study.

Tungsten - They are producing 20 tonne (plus or minus per month). Given the lack of feedstock from the stockpile, most is from the lower grade tailings. This amount is only likely to increase as shown by the April numbers. APT Price is increasing and further signs indicate more to come. China processing plants have closed for a month, sending APT price up sharply (according to Fastmarkets).

Quarry - Upgraded several pieces of equipment & electricity systems (one of cost) and repairs and maintenance (expensed this quarter). BAMA hasn’t picked up the rest of their contract. 74% delivered Product demand picking up in April (this quarter). Quarry producing material from XRT sorter testing for feasibility.

ExplorationDrillingFirst drilling since 2012 – confirmed additional tungsten bearing veins of both scheelite and wolframite. Potentially the best mineralized zones (they sound a little excited). The deposit is more predictable (can only be a good thing). Continued mineralization in the gap areas, but the drill testing hasn’t been assayed. Unexpected intersections to the east – that leads to Iron Duke which is outside the current reserves (more tungsten and increased NPV). They have introduced a hylogging alteration study (CSIRO developed process for drill samples). More detailed which will take longer (but Company thinks it will be worth it).

Possibility of extending open pit before going underground. But detailed assessment is still to be done.

GoldExpressions of interest to explore the gold have been received.

Cash PositionHighest cash position I can remember. More cap raising is unlikely due to hiring of Rock Financial and discussions with NAIF.

Debt Funding - NAIF need the feasibility studies before they will lend. Rock got ADANI hundreds of millions, so we should be an easy one. NAIF are keen to lend Preliminary briefing report already delivered to NAIF and it aligns with Commonwealth Govt support of critical metals and regional development (jobs).

Summary
Cashflow lower than expected due to wet season (BAMA & lower Oresorter production which led to lower tungsten production). Lots of capital investment and one off expenditure.

Many references to testing, ongoing studies for feasibility etc. This says they are still working on the development of the project and not at full pace. Those investors who think the quarterly cashflow is how this project will run, probably don't understand the potential of the project and deposit.

I sense that we will see a better understanding of the deposit and a better grades (scheelite and wolframite), previously Roach focussed on wolframite.

The recent cap raising was mainly to get Morgans as a broker and to build enough reserves to complete the feasibility study, while the BAMA money was delayed. NAIF will provide the capital required without going back to shareholders.

Am I frustrated it hasn't happened sooner, Yes, we would all like it to go smoother and without a hitch, but life's not like that.
Am I pissed of other projects are trading at a higher value or higher % of their expected NPV. Bloody oath! Given we are probably at 10-20% of the NPV and actually producing tungsten whereas the others are still to produce ANY TUNGSTEN. But hey good luck to them. Just means better value here.

On a sad note - Dr Andy White founding director and original geologist, passed away last month. My condolences to his family. He certainly knew a lot about the project and is probably why I have a strong conviction about it as I learnt alot from him.