Ann: Quarterly Report for December 2023 Quarter, page-53

SP falling will creates a downward self reinforcing cycle.

• Market knows the company has to raise money
• The debt/equity ratio is 80%+ today SP, "unaudited drawn debt at end of Dec-23 qrt US$146m", this ratio goes up exponentially with falling SP.
• The debt/equity ratio makes it unlikely to attract good loan terms or interest rate, which makes the cashflow problem worse in the long run
• Difficult to see a run way to success (at least under current management and decisions taken)

Company should have cut cost, or locate funding to improve balance sheet before getting into this current position. But it is all too late now. It is on the back foot and the market knows it. Market will want its pound of flesh before handing money over.

I like the copper story and I like the assets. But it is all the other baggage that is making me wait on the sidelines. Definitely not looking to catch knives when there's more than good chance big discount cap raising is on the cards. I won't be surprised if company gets a loan deal from a particular party and the retail mum n dad investors are worse off. See what is happening with HFR.