I think all the arguments about SOI are not helpful.When it...

I think all the arguments about SOI are not helpful.

When it comes down to it, SOI is mostly psychological... a consolidation won't necessarily change the value of SYA.

@sachz has a valid point that MC is much more significant than SP.

Others have valid points about the level of dilution SYA holders have experienced over recent times in regards to holders owning a smaller piece of the pie hence greater difficulty for someone with say a 30cps average to get back to breakeven.

Both sides though appear to be arguing about slightly different things which isn't helpful.

I understand the logic that there is risk that further CRs may be needed but one would expect that if that does occur it will be to add value by enabling SYA to expand and therefore the dilution shouldn't be much of a concern. It seems to me that the need for further CR funds to support rampup at NAL has passed.

I think the size of the most recent $200m CR really did surprise the market. I know myself and some others took a look and thought, wow, do they really need that much? Could they have gotten away with something smaller to lessen the impact of dilution?

So on the subject of SOI, CRs and dilution, I found the following astounding...

June 30th SYA had AUD211m cash and cash equivalents*.

Let's assume SYQ received around AUD70m for the 90% payment of the 19200dmt shipped.

Late July / early August SYA received the remaining AUD31m from the AUD200m CR.

The company declared August 31st cash & cash equivalents of AUD257m*** and stated it's expectation of no more receipts for the quarter and that the total at September 30th would likely be lower as a result.

Just prior to the receipt of the AUD70M, SYA would have been short AUD13m had it not been for the CR.**

Simply astounding that the entirety of the AUD200m from the CR was required. There I was thinking it was quite excessive.

Here was the stated intended usage breakdown for the CR:



* SYA reports on a consolidated basis so SYQ JV funds are counted 100% in SYA cash and cash equivalents claims.

** It is unknown if a further cash call was made to the JV partners in July or August in which case the statement they would have been short without the benefit of the AUD200m CR would not apply if PLL's contribution exceeded AUD13m. I suspect a cash call was made.

*** It is unclear the extent of SYA funds that could not be applied to support SYQ that were raised under the FTS provisions and were to be applied to Canadian Exploration Expenses.