this is quite dour indeed. 1. Flavio should go. This...

this is quite dour indeed.

1. Flavio should go. This announcement and the suspension extension note reeks of poor financial managment and planning. I have no doubt he was as complicit as Luke in feeding tripe t the masses;
2. The reported $20m facility is only available if the build an airport (or maybe a road upgrade) in which case if it's available likely to be at least fully consumed in that construction. It is mischievous I think to omit this caveat.
3. With 2 above in mind and given the age of the cash flows reported, my sense is that STA is financially brittle even allowing for the subsequent $15->$20m shipment. One of the things about mining in remote places is that your costs are by and large fixed ... you will run x DMU's, you will operate y WCP's, you will have z employees on site and will consume a PJ's of energy. Not much wiggle room to tame costs which look to be tracking somewhere north of A$25m / qtr. Can you see the squeeze?

The conceptual size of the capital raise is what pricks my imagination. Faaaarrk!