It would be helpful to have a few more details on Penumbra funding but I don't think thats the issue at the moment.
I think most would agree Penumbra is comfortably funded, as stated by CCC from cash ($9m), the undrawn convert ($19m, assuming that is available-that needs clearing up), $25m from the EDF facilities ($5m available now I think, $15m once EDF security is perfected on the final Mashala payment, assumably at this stage by equity, and another $5m subject to undisclosed conditions) and operating cash flow (maybe $15-$20 annual, less overheads, exploration and other devlopment expenditure). On top of those stated sources, they will probably also get $10m from the sale of Vanmag. I note also that zar116m of the zar284m cost is for mining equipment which i assume will be at least partly leased.
Aside from explaining the conditions for drawing the convert, and perhaps the edf facilities, they probably can't say much more on this without giving cash flow forecasts, which is highly unlikely.
The real issue is the funding of Dewitt, which is supposed to be developed in the second half. All we know on that so far is that its $40-70m cost will be project financed with 30% equity. Dewitt is supposed to have a full year of production in 2012. My personal view is that will get pushed back a little which will dent CCC credibility again. However, a slightly more realistic timetable, more details of how it will be achieved, and perhaps, a little less talk of taking over the world (well Africa anyway) may be whats needed to attract institutional investors and start the long talked about revaluation. (Less blatant manipulation from likes of Mikayla would also help, at least the mods seem to be clamping down on him a bit).
For those that trust CCC to have Penumbra and Dewitt both up and running by January next year, the shares are obviously crazy cheap.
CCC Price at posting:
70.0¢ Sentiment: None Disclosure: Not Held
