Black Swan Production Restart, page-74

Why does POS need $30M cash at bank today?
I still dont see any good reason sorry.
4 years of drilling budget at $3.2MpQ upfront now!

Whilst the CR was larger and lower priced than expected, what it has done for the POS balance sheet and cash power is amazing, they have $30M cash and NO DEBT with only $37M capex needed for restarting BS mill circuits 1 & 2 in 4-6 months.

So this CR SPP has reduced the need for funding by $25M and funding needed is only $15M rather than $40M so POS now has the bargaining power over all the offtakers such as BHP/Trafigura.
In fact POS may not need any funds from them at all!

If AF puts in $15M say at a CN of 50c ps & buys up to 19.9% on market & joins the BOD like Creasy did at IGO & like he did before on POS as Chairman, then we should see a rerate imho.

I still dont understand why PH went with such a large cheaper unneeded CR now which is 10 quarters of cash, he didnt drip feed it like he did in Dec or like DS RD did in 2016-2019.

Reading the actions show to me BS mill is restarting, a BIG DEAL is coming, funding is effectively done and they are going to restart BS mill as no need for that much cash otherwise. Thats why I keep looking for signs of BS mill restarting before they announce it.

Can anyone explain to me why POS needs 10 quarters of $30M cash today rather than just $10M?
Its all for drilling right? 10 quarters of drilling?
Thats 4 years of massive drilling at $3.2MpQ now which is way above the prior drilling budgets of $1MpQ.

The only thing that makes sense is that BS mill is restarting & the FID DFS funding offtake are already near finalised.

Cant walk up restart production without DSO without starting up the monster BS processing plant.
And with NP at 8.74 rather than 4.00, why not start it up?
That makes sense.

START HER UP.