Some key points of interest from this announcement, with some comments re prior info etc,
off the top of my head:
- Over AUD$14M cash reserves at Dec 31 (AGY + Puna balances)
- AUD$2.87M sent to Puna Mining in Dec qtr
The indicates that Puna Mining spent circa AUD$3.5M during the Dec qtr. This comprises the AUD$2.87M (from AGY) + circa USD$400 reduction in Puna balance from the prior qtr.
Afaict, we still have plenty of cash to progress through the planned works to get the plant operating properly, even if that drags on a bit further or if there are some additional hiccups along the way.
As noted previously, the "estimated quarters of funding available" (31 quarters) in Section 8.7 of the qtrly cashflow report is not that useful/accurate due to the structure of the template and the funding/payment structure of AGY/Puna. This is primarily an issue with the "template" so investors need to consider potential total cash flow in future quarters, including "funds sent to Puna Mining" in Section 2.3
Note- this "template issue" results in Section 8.8 being "N/A", which may eventually NOT be accurate. Investors should understand this, but imo it won't become an issue for us, since we will likely secure expansion funding before becoming cash-stressed. Something to monitor, in any case. - Circa 60 tonnes of BG carbonate produced
Great progress, considering the impact that the filtration circuit works have had on commissioning, imo.
Still almost 20t produced in the Dec qtr, during highly-constrained "testing programs".- Filtration circuit works: 78 trials completed, focus on flowrate variation to optimise operational parameters and achieve production consistency
Imo this sounds like the hardware modifications are now completed (or largely completed), and it has progressed to narrowing down of parameters to get the filtration circuit humming along. This suggests, imo, that we are at the tail end of this rectification program. Great.- Resource: Dynamic modelling underway to develop an "updated/increased" production forecast and optimise the borefield design.
- Resource and aquifer remain open at depth; "excellent scope" for further resource expansion.
The company has previously hinted at a subsequent target of 25ktpa. This could be on the cards here, imo, and afaict the resource update should enable upwards of 20y total LOM with a ramped up production profile (eg. 2-12-25ktpa). iirc we are expecting further details on this prior to July. Great.
Potential further resource expansion? Great again. - Expansion permits: "final updated hydrogeological data observations provided to the Mining Secretary's department".
- "recent dialogue" with the Mining Secretary and key govt officials
The use of the word final here is encouraging, imo. It appears that the team that is assessing the EIA report have all the info/clarification they need and are close to passing it on for sign-off...? Great.- 10ktpa expansion pre-development engineering works continuing
- "to ensure operational readiness and a seamless progression"
Great. Staff being utilised to progress engineering and design in advance of final approvals. Minimising idle staff by working in anticipation of permits, wherever they can. Great. Hit the ground running.- Strategic partner process: 'secure funding" etc from a "tier-1 counterparty in the EV supply chain".
- "continues to receive inbound interest for such strategic arrangements"
"Tier-1" language remaining is very encouraging, imo.
Still getting knocks on the door, too, Great. Best to keep assessing and reassessing in order to secure the best long-term partner/deal, imo. A bit of competition between interested parties never hurts, either. - "a key factor to finalising an outcome being timing of the EIA regulatory approval"
iirc this is the first formal notification that we have received on this topic - early on it was stated, iirc, that the permits, expansion partner/funding and 2ktpa plant running were NOT interdependent. A while back, iirc, a poster here noted that he had communicated with the company and JZ noted that the partner would come AFTER the permits... but we can't rely on that as "official" (and that's not to say that we shouldn't trust said poster, but it is not official until it is actually official).
hmmmm.... ok well I suppose time will tell whether the partnership is signed after the approvals are received, or with that as a condition precedent. Might end up being a blessing in disguise, as @blacktrade suggested, if the big announcements come when sentiment returns to the sector...- Tonopah: "progress has reduced due to prioritising works at the Rincon Lithium Project"
Great. Conserve cash and focus on getting Rincon producing $$.
Just some thoughts to ponder.
GLALTInvestors! We are getting close now!
IMO
DYOR