Hey John,Personally, I think you were bang on with your...

Hey John,
Personally, I think you were bang on with your originally post of a CR mid to late year. Their "known" financial position is NOT strong in my view and accounting trickery is in play. This whole quarterly announcement is a legal requirement but has not really added any new news.

If you compare the last 2 quarterly's (Oct and Jan), you will see that the staffing and corporate costs are similar (regardless of what line they move the cost around to). In face the cost has increased by circa 80k. The exploration and evaluation cost wont go away as I am assuming that this is for the PFS. There is also the VAT refund which was delayed from the last quarter "due to auditing", so I am assuming that this will not be an ongoing counterweight in cost reduction. So on that basis, cash burn is sitting circa $1.7m a quarter. This equated to a $3.4 over the next 2 quarters. Their hand is almost going to be forced to find more money.

Outside of a partner signing (JV), sale etc., I see a need for more capital before we get to the last quarter of 2023. Yes we are "fully funded" for the PFS, but there is definitely not a lot of left over money for anything else. DFS is absolutely going to need more capital from somewhere.

The other aspects of this announcement to keep an eye on is that the site selection is already running late (yes only by a month so far - but was expected by the end of 2022), so I will be keeping a keen eye on ensuring that management are keeping close to their time lines and I would not want to see this drag out.

As mentioned, I think this is really a no news quarterly announcement and has not reduced my fears around the funding of the project.