General Discussion Topics, page-127363

I agree Split, at the time of the CR there was potentialy two options the second being an OTA , in fact there was a third which would involve reducing working interest for a free carry ( that could also be part of an OTA.) , all options involve dilution in some form be it through the issuing of shares or a reduction in working interest, debt or some other loss of control.

SYA doesn't / didn't need an OTA for our unallocated spod as the product can be sold into the spot market with no ties at all which also allows time for other options to be considered. What an OTA is needed for is a Carbonate plant at NAL and also the MOBLAN mine and concentrator and that is still a work in progress and may be linked.

I have little doubt but no proof that whatever OTA was put before the BOD would have been accepted if the terms were favourable , so one can reasonably assume they weren't seen that way and raising cash, retaining independence while buying time was seen as a better option.

We will never know for a fact or it's effect on the shareprice but what we do know is we are well cashed up now, can sell our unallocated spod into the spot market and still have time to consider other options around OTA's for NAL and/or MOBLAN, but we will eventually need an OTA as finance will be required.

The concern at present is the price of concentrate and margins, the company has no say on the former but can work on the latter. With regards to the shareprice, for a producer they usually gravitate to estimated earnings ( and an associated PE) and on current earnings projections its hard to justify a much higher shareprice/MC than now unfortunately ,our earnings per share is shaping up to being between 0c and 1c IMO with 0c being closer IMO unless there is a big turnaround. we're already halfway through the FY. Markets also tend to undershoot or overshoot in volotile markets.

Personally I doubt our shareprice would be any different now regardless of an OTA, CXO as an example has largely unencumbered OTA's with strong partners for all its product and a good cash position but like any producer its shareprice / MC reflects the current situation with concentrate price ,ramp up issues hence squeezed or eliminated margins. Cash flow is everything as a producer.

Cheers Whisky