Ah yes right you are Precis. My numbers were not including the stockpile of basemetals to be sold from last quarter.
Furthermore, that's really just a total capex of what is needed pre-production. It doesn't all need to be found now. It's a total spend over 2-2.5years until Federation comes online.
Which translates to an average of $3.3-$4M for Federation development cash burn over the next 2-2.5years. It sounds far less daunting.
Management had to stop development in the short term given cash burn had us dipping below that threshold of remaining cash balance soon (and unable to draw upon current debt facilities).
A breath and some proper thought needed before we go again.
As long as the current assets can remain financially viable for the next 2-3years they may just be able to skip a cap raise. It's a fine line though. The achilles heel is that none of the currently operating assets have a long life left or are particularly lucrative.
The pessimist in me thinks they may need to do a raise sooner rather than later to keep the lenders content to dish out another ~$70-$80M over the next 12-18months... time will tell.
AMI Price at posting:
12.5¢ Sentiment: Hold Disclosure: Held
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