Hi GuysI've gone back over the last Quarterly, done some...

Hi Guys

I've gone back over the last Quarterly, done some mulling, and here's my take fwiw:

. the 13Ktpa EARS plant at Newcastle is going to take 5 months to complete.

. the design for the essential equipment has been completed. I'm assumming that if you've done that, there wouldn't be much left in the design phase. Construction and Commissioning phases yet to be started.

. quotes are being sought for the essential equipment. So basically it looks to me like the major milestones are around equipment purchase, delivery and installation before commissioning. Commissioning will take a month and then assumming loose ends like acid buyers have been tied up (completed) you're into the start of the 6 months 24/7 before cash flow commences. My guess is the big unknown and potential roadblock might be equipment delivery. Does some of the equipment APG need, have to be constructed before delivery? After the equipment has been delivered does it have to been modified on site before installation? Who knows.

So IMO until we get an update from APG we really are just guessing about the timeline.


Cash burn this quarter looks to me like:

. 100K for air-core drilling of EL whatever (I call it WIM 150). May not be an on-going expense, depending on results.

. 700K or a bit less (depending on cash requirements for the ERMS plant study) for the 13Ktpa Newcastle EARS plant. That amount should include the purchase of all equipment required. The equipment purchase should not be a repeatable expense. Although there will be ongoing equipment/plant maintenance expenses, they should be less?

Sooo that leaves me thinking that they may not spend anywhere near 800K in the second quarter.

IMO too early and too many unknowns to speculate on a shares placement. But it's good fun as long as people don't take it too seriously. At current SP would APG be keen on a placement? I think not. We know they have no debt and I have heard that there's plenty of money available for gold exploration.

Thinking they're doing OK atm
cheers
Lekki