Capital raise in January? You be the judge., page-8

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kevin103

16,777 Posts.

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04/12/19

10:21

Post #: 41784701
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Originally posted by bottle2: ↑

As sophisticated punters in the mineral exploration space of the stock market know - a PFS proceeds the much more expensive BFS (bankable feasibility study).

Sophisticated punters will also know that a PFS usually causes a rise in the SP. and that this is an excellent time for a company to do the dreaded 'capital raise' for that expensive BFS (and to simply keep the company operating).

This is then an excellent time to scurry like a mouse to the company financials to see if that is indeed necessary or likely.

Casting an eye over the last Quarterly we see that on Sept. 30, LTR had cash reserves of $15.6m (after previous quarterly expenses of $4.8m) and with projected expenditure for this quarter of $4.24m. In other words, by Dec 31, LTR will have $11.2m cash.

Now $11.2m doesn't sound toooo bad ... until you factor in the near $5m quarterly spend that the company exists on (plus the need for extra funds for the BFS).

So, 6 months cash left, max?

Obviously, a cash raise can't be let go to the last few months, or a sudden stock market correction means a credit squeeze, and the company becomes dangerously close to being insolvent.

So, now that the PFS has been released. And with 6 months cash left. A capital raise in January??

Just my 2 cents worth to start a discussion (not investment advice).

What are your thoughts of the likelihood of a capital raise in January. And At What Price??

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You forgot to add another $1.4mil paid by Directors CR at 12c which went into the kitty after Sept 30.

So at end of Dec 30 we should be around the $13mil mark.

Probably CR well after we upgrade our MRE to 175mt in Feb 2020 for 25c per share

Last edited by kevin103: 04/12/19

LTR Price at posting: 8.3¢ Sentiment: Hold Disclosure: Held
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