I have read this thing a couple of times now, and there are some interesting points in this quarterly that are keeping me hanging in there and optimistic.
There are some manoeuvres by the BOD, which signal to me they are big believers in this project....as they should be,,,
And for our resident downrampers, they will continue the lifestyle tag, nothing is happening, no-one is going to get anywhere yadda, yadda, yadda...
But these guys have instituted change and continued these pursuits and have done things that none of my other small caps have done.
In my sphere of investment, they are unique.
Additionally, at a corporate level, the Company is extremely conscious of the need to protect and preserve shareholder capital in a volatile and challenging market for small cap companies.
The Board has now identified various cost efficiencies which have been implemented to
REDUCE OPERATING EXPENDITURE BY 60% PER MONTH.The measures implemented included
REDUCTION IN EXECUTIVE REMUNERATION, headcount reduction, and lower operating and capital costs after the completion of demonstration plant trials at Ionic Technologies and the Makuutu Heavy Rare Earths Project.
So-
- Reduction in operating expenditure by 60%
- Headcount reduction on multiple projects
- Reduction in executive remuneration
And it's the last one that has struck a chord with me.
I am in a few shares just like many of you are.
Most in the critical minerals space are losing money or struggling to progress their projects, but this is the only one I own in which the directors have cut their salaries.
Many have practiced what they believe to be strict fiscal management, but they have not touched their salaries.
Most have had pay rises....
So for me this speaks volumes, both in the belief, commitment and personal investment that the directors have placed in this company.
I travel a little for work....
@skijapan, I am actually in Tokyo now...
It is no where near as glamorous as it seems and when you get a little older and have family, you travel for work when its a necessity and to get the job done...and that is what they are doing...
Well, well, well....Viridion....great choice of name.
Post #:76117865Although we have divested our equity stake in VMM, I really do get the impression that things may be moving along quickly with VMM and the Brazilians.
This divestment was on the cards for us and I totally understand this decision.
There is no love lost between the JV partners here, and I am sure they realise that we need the cash which keeps us in the game with them, to eventually reach our refining aspirations.
Both companies will co-fund the Viridion and the proposed Brazilian production facility on a 50:50 basis. Given challenging market conditions,
the timeline for the scoping study, targeted for completion by the end of 2024, is being revised as near-term opportunities on magnet recycling in Brazil have elevated in importance from key potential stakeholders.
So the messaging, as well as recent visits, gives me the gut feel that things are moving along quite well here. And even though there is government involvement, it feels like things will move quicker here than in the UK, and I would not be surprised to see something eventuate soon, maybe even by years end.
So keep an eye out for some movement in Brazil.
The FS is a done deal. They have the metrics and have been discussing it in the UK, which is exactly what I thought they may have done. Drafting and final messaging is probably being finalised but the bones that can be discussed with future partners and to work out funding would be available. They can do this while keeping their cards close to their chest and not disclose to any other recycling wannabes of the metrics they should be aiming for, and the metrics that they would want to beat...stuff em....they can work it out themselves. Keep an eye out for it soon, with some deal to follow it soon after...
The cash position still worries me. It always has...
The grants are great, but the working capital remains low, and still reflects less than half a quarter.
The cost cutting has not had a chance to take full effect and is yet to be fully realised on the books. That alone would increase our runway and give us significantly more time before the lights went out.
We have been down this road before and have managed it well. The lights are still on and we seem to be accelerating and getting closer to our goals.
These are not the actions of a company going under....quite the opposite.
There must be conversations going on that we are of course not privy to, which are safeguarding the future of our tech, and the future of this company.... that's exactly how it feels to me.
Having said that, I am NOT ruling out a CR at this stage...you just cant keep operating with such low capital and expect to grow and execute.
We got through last quarter without a CR and have received funding, so I could be way off.
But the books point to a CR.
As unpalatable as it seems, the silver lining here that if it gets us over the line and ensures our success, then it is money well spent. It means we are spending money executing the plan and laying the foundations for the future...which seems closer than ever.
It sounds insane, but In a way, I would be worried if they didn't raise, that they had given up.
So I reckon its a 50/50... but I would feel much more comfortable with a little more money in the bank.
Anyway, I have bored you for long enough.
I thought they may have nailed something definitive by now, but the cogs of government turn slow.
However, it does feel closer than ever, and when those cogs do turn, all the angst, patience and belief will be worth it.
Good luck everyone.
(20min delay)