Morning all,
Just wanted to add a few a points in relation to AVZ's expected cash position as at 30th June, 2019.
Cash as at 30/3/19 was $12,066,000
Outflows est. for June quarter were $4,477,000
Proceeds for June quarter were $190,000 (conversion of options)
That leaves an estimated $7,779,000 at the end of June
However we know that there were some delays to planned works last quarter so I'd expect the actual figure to be more like $8m or greater. In any case, $7.8 - 8.3m is certainly more than enough to not to have to worry about additional funding this quarter, and likely suffice planned expenditure until the end of this calendar year.
In the meantime, the appointment of an 'OT expert' during the last half signals to me that project funding (at least part thereof) is imminent this half, and possibly following the completion of Met Tests. Such an outcome would likely mean no further standard or Patto's style CRs are necessary, but this is all IMHO of course.
Finally, it is worth noting that cost reductions been made in at least 2 areas that I'm aware of, which should help AVZ's budgetary position from this quarter.
1. AG's $25k per month retainer is no longer (a direct saving of $150k this half).
2. The appointment of an Aussie engineering co. to assist with the completion of the DFS means that AVZ can pay this forecasted expense in $A. My understanding is that management were previously contemplating offshore expertise to assist with the completion of the DFS (which would have resulted in USD payments), but now we get the very best of Aussie talent without the negative impact of a weak AUD/USD exchange rate. Smart move IMO.
GLTA
Cheers
Elpha
