To say this company is in trouble based on the information available, is disingenuous.
The company is now a producer of Zinc/lead with a MC of circa $10m.
If it had a market cap of $100m then I might agree with you that yes they are in "trouble" from a SP perspective in the short term but that's not what we have here.
Mining commenced in June.
As we can see from the scoping study graphs a small amount of production was pencilled in in month 4, which should have been in Sept/Oct so there has been slight delays. It seems based on the first shipment size that we are in month 4 of the mining plan now which had 288t of product expected to be shipped. We are on the cusp (all going to scoping plan) of being a self sustaining micro cap with plenty of satellite prospects to increase LOM over the coming months.
I have been a vocal proponent of more money being required.
Im amazed it hasn't already happened but am still in the camp that it will happen.
Hopefully I'm wrong but given the size of the shipment and the market action and the last cashflow report, Im still backing that call. Ideally a small debt facility to get us through the first few months of production and flexibility to get the ball rolling on rapid drilling on the other prospects. Id rather not see anymore dilution.
LOM Ebitda 60% basis at current prices is approx $14-15m. Bearing in mind no tax will be payable. Thats not what I would classify as a company who is in trouble but there are some challenges but its hard to say that they are not already priced in here.
SL1 Price at posting:
2.0¢ Sentiment: None Disclosure: Held
