Ann: Trading Halt, page-53

There is no need for you to misinform here. Maybe start reading the announcements and analyse them.

MD's presentation 29 November 2023:

Page 12 - Original capital spend 25.7mln, Revised capital spend 17.6mln due in part to 4mln raised in August 2023.
So the reduction was 15% and not 30%. If they went on your advice and engaged Big4 consultants their costs would have probably tripled. Regarding cost overruns, yes they may happen but based on what I have seen with this company it is unlikely. There is enough phosphate mining and civil engineering skills.

Page 16 - Breakdown of upfront capital cost - about 9mln in the first half and 8mln in the second half.

Page 17 - Working capital 6mln.

Recent announcement - Raising 10mln (7 mln for capital costs and 3mln for working capital)

Sales of product in the first half should bring free cash of at least 10mln (50,000 tonnes x 2 quarters x 100 profit margin). The working capital facility from Export Finance was undrawn by about 3mln from memory.

So the capital costs in the second half are covered based on projections.

If anything bank debt would be available in the next few quarters for sure to be secured against cashflows, if they ever need debt at all.

They opportunity to buy up at current prices will be drying up as quickly as phosphate rock once people begin realising that the company is profitable and fully funded for expansion. I expect it will re-rate to market value rather quickly.