CSD are on the hook for C&M costs for the Auctus assets of up to $250k per month from 31 July. With the BOM forecast of a La Nina event (wetter than average wet season, starting earlier), this will result in increased C&M costs over the wet (more pumping, monitoring etc). Another cash draw on top of the cash draw from existing operations (which are not cash generating)
It will be interesting to see if CSD get their quarterly out, and if so, what their financing looks like (at 30 June, CSD had $38k in cash and $6,089k in undrawn financing facilities) - question is how long can CSD keep going for without a new source of finance.
Outcome is not good for equity holders - either administration or a refinancing with associated dilution.
CSD Price at posting:
12.5¢ Sentiment: None Disclosure: Not Held
