Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-8

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PhillW

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01/05/24

16:50

Post #: 73613441
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Originally posted by sell30APRat142: ↑

Nope...

Revenue of 29.2M for the quarter
AISC of 42M

Losing 10.8M a quarter before any debt repayments.

Toho are making prepayments to keep the lights on (while they decide whether they want it - for Xc in the dollar to clear the Regal Debt). Presumably (hopefully, for them) they have some lien over the stockpile of concentrate to cover the prepayments.

The issue remains even with 100% debt write-off who steps in and pays 1c for an operation losing 10M a quarter. I think that list is incredibly short, hence why all equity goes to zero.

Toho are the only suitor and Regal need them to pay $1 more than liquidated scrap value to do the deal. But why would Toho pay anything for the privilege of losing 10M a quarter? Just buy feedstock from another operating mine.

This is the impossibility of the transaction. Regal can't accept less than scrap value and Toho can't (reasonably) pay anything to take on a loss making business. So in the end it just goes into liquidation and Regal try to recoup whatever they can (which is likely near zero when demob costs are factored in for any buyer of the scrap).

Everyone loses (except all the current and prior execs who cashed their fat pay cheques along the way).

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Thanks for enlightening me. I was confused because they quoted $29M revenue and then in another area of the quarterly which you have circled above and also in the cashflow they state $54M from product sale. So are you indicating that the $25M difference is Toho prepayments?

Last edited by PhillW: 01/05/24

G1A Price at posting: 5.9¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-8

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