lets see how this plays out with regards to numbers"The...

First 30034 Last

Share
Profile

Follow
Swiftbite

298 Posts.

57

21/05/24

21:08

Post #: 73942466
Share

Originally posted by MM0: ↑

From the DFS.

Stage 1 Capex requirement is A$214.5m for the Mine and Mineral Processing Plant and $394.6m for the PSG Facility for a total of $609.1m. This includes pre-production working capital but doesn't include operating working capital.

With $114m cash or thereabouts, and an (up to) $185m loan facility aligned to the Mine and MPP ($150m term facility + $35m cost overrun facility), we might expect something like $150m loaned for Mine + MPP construction and $64.5m cash contributed, leaving circa $49.5m cash. At this point we'll have $150m in debt, and $394.6m capital required for the PSG facility (I'm figuring we'll need to keep the cash on hand for working capital and loan repayments, which lines up with the DFS commentary, but maybe I'm being over-conservative).

We're running a little behind the DFS timeline, but the schedule on Page 36 notes the plan to have construction on the PSG facility overlapping construction on the MPP, so it assumes we're fully funded for all capital costs from the get-go (i.e., while we'll start producing graphite concentrate ahead of PSG facility commissioning, that's not intended to fund the PSG facility).

Accordingly the DFS notes that this $394.6m required for the PSG facility will be funded from equity and debt instruments, noting conversations are already in progress around equity investments.

Expand

lets see how this plays out with regards to numbers

"The Government's support to Renascor Resources Limited (which had been announced in April 2024 to be a $185 million loan to fast-track the development of stage one of its Sivious Graphite Project) has been revised, with financial implications not disclosed due to commercial sensitivities.7 days ago"

Federal Budget 2024/25 Highlights - Insight - MinterEllison

Another loan wouldn't be classified as a CR I assume. There was already discussions of getting finance this way.

Also to note it was mentioned by DC that they would try and minimize share dilution as much as possible.

RNU Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
9 Upvote

0 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

What's causing the cost-of-living crisis, and how to navigate it

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint