Well it says the completed project after all staged construction...

Well it says the completed project after all staged construction will cost 184m to deliver capacity of 70,000 kgs. Of which 47m has already been expended, including acquisition of the Mildura Site and existing buildings, and the glasshouse structure is now in place.

It is proposed to proceed on a staged basis of 3 stages, which is geared around expense vs capacity or output (which imo seems wise with the Canadian production consolidation taking place).

The first stage completion cost (yet to be provided) will translate to 25,000 kgs in capacity and will be implemented on a timetable where demand will take that capacity. To my understanding this means 25,000 kgs in demand is locked in for Stage 1 completion 2020.

Stage 2 and Stage 3 (costs and capacity targets tbd) that will combine with Stage 1, to equal 184m in cost and 70,000 kgs capacity.

The new Tier 1 Bank term sheet loan of 95m appears to be just over half what is required for 100% completion and FULL capacity. It is my analysis of that announcement that management is looking to get Stage 1 completed, being 25,000 kgs capacity, for the cost of 95m covered by the term sheet loan. The remaining 89m (of the 184m total) will be for Stage 2 and 3 when market conditions and contracts can pay for this bill.

IMO this is good business management, making hard decisions based on numbers, in the face of a massive correction in the world leading Canadian supply space. Better making the tough call now and "growing" (pun intended) on confirmation of sales contracts later. Companies which don't run like this may not be around in 2 - 3 years. Where as CAN will actually be making money at this point putting us in a much better position to obtain finance. Because its been my experience that banks are happier to lend you money when you don't actually need it.

dylanj