i smell a cap raising coming up, page-6

Projected cash balance of around $10m by the end of this month with -$30m worth of short-term liabilities to pay in the next 2 and a bit months. A shortfall of some $20m so a placing is more likely than not.


"According to RBC Capital Markets analyst Leon Esternhuizen PLA faces a financial crunch by end-August 2011. PLA had available cash of some A$28.5m as of last quarter against which were liabilities of A$30m through to end-August, while the Smokey Hills mine ?is projected to consume some A$18m this quarter.

He concluded that ?of course, such an equity raise will simply not take place unless Smokey is proven to be working and generating positive cash flow on a sustainable basis. A failure to deliver positive cash flow from Smokey Hills could lead to a further dramatic sell-off in the shares. "