LMG

2.17%

4.7¢ latrobe magnesium limited

scary to think at what price tho ??? If share price is below 3c...

First 2103 Last

Share
Profile

Follow
Pippo17

3,198 Posts.

259

19/06/24

12:19

Post #: 74388006
Share

Originally posted by tropic: ↑

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.

Expand

scary to think at what price tho ??? If share price is below 3c they are simply diluting it to a pulp.

They’ve wrecked this opportunity for the moment anyway

LMG Price at posting: 3.9¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

RCE

Recce's R327 found effective against E.coli during clinical trial

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

Microcap Wrap: 5 explorers with news out today

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

There are more pages in this discussion • 63 more messages in this thread...

First 2103 Last

Add LMG (ASX) to my watchlist

(20min delay)
Last 4.7¢		Change 0.001(2.17%)		Mkt cap ! $103.0M

Open	High	Low	Value	Volume
4.6¢	4.7¢	4.3¢	$70.94K	1.547M

Buyers (Bids)

No.	Vol.	Price($)
3	564837	4.6¢

Sellers (Offers)

Price($)	Vol.	No.
4.7¢	101	1

View Market Depth

No.	Vol.	Price($)
3	564837	0.046
1	163876	0.045
2	151200	0.043
3	1209338	0.042
1	473261	0.041

Price($)	Vol.	No.
0.047	101	1
0.048	376867	2
0.049	801200	3
0.050	339130	2
0.051	7000	1

Last trade - 15.30pm 28/06/2024 (20 minute delay)

LMG (ASX) Chart

scary to think at what price tho ??? If share price is below 3c...

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Recce's R327 found effective against E.coli during clinical trial

Ava Risk Group expands US presence with A$0.7M Substation Deal

Microcap Wrap: 5 explorers with news out today

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

scary to think at what price tho ??? If share price is below 3c...

Top Stories

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Recce's R327 found effective against E.coli during clinical trial

Ava Risk Group expands US presence with A$0.7M Substation Deal

Microcap Wrap: 5 explorers with news out today

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News