DFS states preproduction CAPEX of $68m required, with FID in September qtr this year and work commencing immediately - contractor has been selected. Last Qrtly report said we're on track for finalised term sheets this qtr. I imagine prior to the FID they want to ensure they have funding locked in. For me the question is the proportion between external debt and some form of raise from shareholders/instos? The other questions in mix is whether they secure funding for peak cash drawdown - Q1 2022, which is around $100m, given it is so close timing wise the the pre-production CAPEX requirement. Say case 1 is Pre producution funding only = $68m plus 20% contingency = say $82m Say case 2 is Peak cash drawdown funding = $97m plus 20% contingency = say $120m With $50m in bank at the moment i'd expect they be looking for funds of around $50m for Case 1 and $90m for case 2. The final question for me then is how much of that will be debt, instos, and shareholders...? It could be a short term "ouch"!
MCR Price at posting:
82.0¢ Sentiment: Hold Disclosure: Held