The largest issue right now seems to be that they aren't able to...

The largest issue right now seems to be that they aren't able to get the coal to port because of the railways. That might resolve end of month as they say. If they could get what they produce to port the inventory financing from Javelin could fill the gap. They would then have the money to purchase what they need to ramp up production.

Highlight of the relevant commentary:
"For most of June quarter, New Elk has maintained a 25kt stockpile at its rail loadout (that is two trains of

coal), as BNSF has increased cycle times from the loadout to Mobile and back from 12 days to up to 22 days.

This is due to an inability on its part to crew its engines following major staff lay-offs during the COVID

pandemic. Both BNSF and Union Pacific are now experiencing a serious shortage of skilled labour to operate

their trains which they assure us will be resolved from their current recruitment efforts within the next six

months.

We currently operate one unit train but have leased a second set of wagons which will be assembled near

the mine rail loadout towards the end of this month. Once operating, the second train will in-part mitigate

this issue. We are assessing the availability of a third set of wagons which we will commit to once we have assurance from either BNSF or UP that they can get engines to power the trains. If we can do this, we can
move the coal we produce as we produce it."

Cash to ramp up exacerbated by:

"During the quarter the Company agreed to issue a secured convertible note (Note) to the Collins Street Convertible Note Fund (Fund), ...

The Company and the Fund are presently working on the legal security documentation required to close Tranche 2, which has a face value of A$12.2 million. Tranche 2 was to provide additional working capital but has been delayed by the Fund requiring an additional independent valuation of the Group’s plant and equipment assets, as well as third party leasees not providing timely agreement to security provisions /recognition requested by the Fund."

It sounds like tranche 2 has basically been all but pulled.

There is a scenario that the rail to port logistics issue actually does improve end of month and with the Regal money plus continued high prices (+ selling thermal into Europe) they make ends meet. Not saying this is a good investment now by any means but just talking about if the company goes bankrupt or not. As an investment you are probably better taking the money to the casino and betting on black .