So all this talk about SDV. Partner or go it alone. Seems like the company can approach either path comfortably.
Scenario 1: With a partner Ok great, it would be nice to have but not the only option to develop the project.
Scenario 2: Go it alone Should be fine also. When POSCO cash hits the account taking the company's cash position to AUD $435 Million, it'll be a nice launchpad. Now, you wouldn't spend $435 million on one hit to get a project off the ground right? It's just common sense.
SDV could be built in a modular/agile way as the company may have alluded to in the past. Perhaps the 15 hectare pond they are building right now is taking this approach. Let's call this phase 1. Once they get phase 1 to a point where it's generating income (even if it's small to begin with) they can iterate on it and start on expansion into phase 2....and so on.
From the cash pile, they would spend small tranches at a time in developing the project in phases. While they are spending money to develop SDV, they are also earning money from Mt Cattlin which is topping up the cash pile. And let's say if they finish phase 1 and start building phase 2, they would be spending to build phase 2 while earning from Mt Cattlin AND SDV phase 1 AND a small bit of interest on the cash pile each month.
There's nothing mind blowing about my opinion here. That cash pile is a nice cushion.
GXY Price at posting:
$2.08 Sentiment: Hold Disclosure: Held
