The tax rebate will allow LMG to stick its head out of the water...

The tax rebate will allow LMG to stick its head out of the water and breath rather than having to breath through a straw.

Looking at some rough financials.

Based on the last quarterly, we have a $26M loan facility with about $4m remaining to be able to draw down. I would expect that due to the delays in tax rebate and production that we have already drawn down some of that remaining $4M, as it was earmaked for demo plant operation so I expect it will be drawn down by the time we get the 2024 rebate.

The 2022/23 rebate is $12.6M.
We can pay off part of the $26M loan which leaves $13.4M loan.
The cash and cash equivalent at end of last quarter was $2.4M which is being spent this quarter but let's assume we will have at least $1.5M of that at end of quarter.

Looking at the 2024/25 year outgoings:

• Admin and corporate costs for a year are about $2M
• Cost of operating the demo plant for a year, let's budget ~$4M
• Costs for progressing stage 2 and 3 are unknown but let's say $2M
• Costs to finish the demo plant (to produce ingots) unknown but let's say $5M

That's a total of $13M outgoings.

Income for 2024/25 :

• Not sure what the revenue will be for the MgO/Mg for the year let's allow $1500/ton and assuming we produce 1000ton = $1.5M

(the $1500/ton is based on 94% puruty MgO(food grade) peaks at that price in US$. Our MgO is no where near that pure so allow $1500 $AUS/ton)

• residual cash carried forward from 2023/24 = $1.5M
• Tax rebate estimated at $16M, of which $13.4M will be used to pay off remainder of loan, leaves $2.6M

So outgoings will be ~$13M
Revneue after paying off loan will be $5.6M

We are about $7M short. Where will that come from??
Options are:
1. Capital Raise
2. Critical minerals fund(loan)
3. Assume the $26M loan facility remains available(bold assumption), it can be drawn down.

We need some sort of stand-by loan facility in place. I don't think we can raise $7M via Capital Raises.

Happy to be critiqued and others to suggest alternate outgoings/reveue estimates.