general discussion, page-2100

Given they have recived the $12M, the insolvency risk should be low. Out of that $12M placement, they are using $10M to pay off most of the accrued expenses so that should stop the contractors from sending in the debt collectors. That leaves $2M to cover outgoings until they receive the $6M from the underwritten share offer.

We are not sure what outgoings there are since 30th April and the next month. If we assume the $2m will cover them then they can limp to the next tranch of $6M raise.

The note to the financials state: Cash is expected to increase by $5M as a result of the proceeds of the Placement and the Entitlement offer. This is expected to cover future operating/corporate costs, working capital and offer costs.

That $5M will not cover operating costs for the 2024/25 year. Note also that the $160K monthly interest for the remainder of the loan will come out of that ~$5M until they actually get the rebate from the ATO. In addition there are the lease costs for that part of the plant for which they have recieved the rebate(and the whole plant after they get the 2023/24 rebate). DP has stated that they hope that any revenue from the demo plant(when it finally gets going) should cover its operating cost. That was for ingots production so while we are in MgO production it will be drawing on working capital(unless they arrange a loan facility). The point I am making is given the cash $'s, level of likely revenue from the demo plant and their track record I expect another capital raise before 24/25 fiscal year end because they will be running out of cash again.