Here is a bit more detail for your consumption
An examination of the latest Annual Report to Shareholders 2021 leads me to believe we are very close to requiring a capital injection.
"25. Matters Subsequent to the End of the Year
On 21 July 2021, the Company entered into a contract with Drivetrain Australia to purchase four Siemens power generators. These are long lead time items required for the commercial development of the LCUP project.
On 28 July 2021, the Board resolved to issue up to 5,000,000 employee options under the terms of the ESOP to eligible staff as part of an annual reward and recognition process.
On 19 August 2021,4,520,000 of these options were issued.
On 2 August 2021, the Company issued a formal Notice to Proceed to Daelim under its Engineering, Procurement, Construction and Commissioning Contract. Under the terms of the Contract, subsequent to the issue of this Notice, the Company is liable to pay Daelim USD 8,779,500 by 30 September 2021"
1 LCK has already paid Daelim USD 8,779,500 (approx. AUD 11,922,561) That's enough to make the CFO's eyes water.
2 To that, add another say $6.00 million for generators, pipes pumps and the like.
3 Other outgoings say $5.00 million
All up, that's in the vicinity of $23.00 million dollars. At the end of June we had approx. $23.00 million is kitty.
That was then. What about now. end of September.
As at 31September: Cash in bank - $17.71 million.
Estimated normal outgoings for Dec Q - $5,072,000
Consultant fees (upfront) approx. - $12.00 million (should have been spent by 30 September???)
For generators, pipes pumps and the like. approx. - $6.00 million. (cant be far off)
So there is, conservatively, $23.00 million. (shortfall of approx. $5.00 million)
Without a capital injection by the end of the year, cash in kitty might be running low. If there is no positive update, I don't think they will have any option other than to call in the second tranche.
Something else to add from the AGM notice
"Knowledge of any acquisition proposals
As at the date of this notice of meeting, no director is aware of any proposal to acquire or to increase the extent of a substantial interest in the Company"
Whichever way it goes, IMO there will be undesirable share number dilution and share price movement. J L.
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