i'm in

Some points:

- Market cap is currently $3.6m
- They have debt of $25m
- They expect to receive $14m from Campaign 8 (I assume all costs are either already paid or included in the debt figure)
- They are now in campaign 9, half of the ore has already been mined and again, I assume these related costs for this half have already been paid or included in the debt figure.
- Remaining mine costs will be lower than previous campaigns given they are not developing and also going for the more easily accessible ore
- Campaign 9 will proces more ore than before (100,000t)

Can they mine their way out of debt? The company is not clear on the cash / debtor / stock position. If they have already incurred costs for half of campaign 9, and they are waiting the $14m from 8 coming in, plus they are reducing the cost per tonne for the remaining half of campaign 9, then they may just do this. A lot of factors will affect the final outcome though.

If they have a few mill of cash at the mo, then receive $14m NSR from campaign 8, then say $16m from campaign 9 (roughly based on increase in amount of ore mined and increase in recoveries) what will the net positon be after other costs? I understand that there can be some delay in receiving payments.


Further points:

- Their net asset position at 31 December was $25m even after heavy asset write downs
- This included liquid assets: cash of $4m, debtors of $3m and stock of $11m
- They have mine property worth $14m after depreciation
- They have plant and equipment worth $12m after depreciation
- They have a project which is in the books at $9m but with a npv of $325m
- They hold several valuable tenements
- A sub holder has released a change in holdings notice- indicating that they have finished selling

Still quite risky as we don't know what the balance sheet looks like currently, but I would've thought if the company was going under it would've happened in March. If they keep reducing their debt to a point where it is almost gone this will be worth so much more than $3.6m

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