So they finished Sept qtr with $200M in the bank. That quarter...

So they finished Sept qtr with $200M in the bank. That quarter they also reported negative cashflow of $26M from operations and $30M from investing activities (u/g development etc). Given the spod price was softer and their strategic review was late December, I cannot see that this quarter will be any better. Perhaps a negative cash flow for Dec of another $50 or $60M, maybe worse.

They also report 280kt in stockpiles. Given their annual processing throughput is ~1.2Mtpa I don't see how that can last till mid year. One quarter of production at best as you cant really turn the process plant on and off. They won't have stockpiled their best ore either so potential for lower grade and lower recovery. Now that mining is suspended and those costs removed perhaps they can make a bit of money from it in the short term.

The biggest issue I see is that the contracts in place for mining, crushing, processing and the underground works - and probably others. The costs here don't just go away. They signed a 3 year mining contract with Lucas TCS for Grants open pit. These guys will take their gear and go somewhere else but there will be break fees. A 5 year contract with Primero to operate and maintain the plant and a $45M contract with underground works at BP33. Worst of all they have a 10 year crushing contract with CSI (ie Mineral Resources) to supply, install and operate crushing and screening. They will either have to keep paying or they lose the crushing and screen circuit.

They can keep their head above water for a while but there will be a big ongoing drain on their cash position. Is it enough until there is a sustained improvement in the spod price?? IMO a lot of pain ahead I'm afraid.