They are burning through cash at quite a clip, and I wouldn't be banking on any of that pre-payment cash being left over for profits after re-commissioning and labour is paid for. Might be quite a while before Mt Caitlin is cash flow positive (i.e. mid-2017 if lithium markets hold up and the AUD doesn't appreciate any more) In the meantime, admin costs mean only about a year of cash left.
Not much progress on Sal da Vida either as far as I can tell (the flagship project). Just some generic comments about an owners team. I thought we were in the middle of a lithium boom, yet they have not been able to attract joint venture partners...or re-garner interest from the Koreans. With cash levels declining, it becomes harder for them to finance things themselves...which leaves the obvious option...
And don't forget its going to take a couple of years to get to profits even after they start building a plant.
Glad some long termers have had the opportunity to get some of their money back, but have things really changed that much since January to justify a tripling of the shareprice (even accounting for recent pullback)? And seems like management are still overpaying themselves (at least not gifting themselves shares like last year though).
Good luck. I know I'll be shouted down but hope people sitting on a tidy profit take pause to think about the fundamentals of this company...and whether its worth near half $billion.
