I don't believe anything that has come out since jan 15th It is...

I don't believe anything that has come out since jan 15th



It is clear from the accounts they were in breach of loan conditions in the first qtr they took out the first loan from the accounts, but you didn't know that till mid march and then you understand why new mining plan and need for drilling which had been on hold was needed imo

remember the merged company came back 14 th dec,

by 21 st dec , one week it was in a halt because of offtake which was "restructured" 15th jan,

no disclosure of breach of loan till accounts 18th march, no warning of major write-down disclosed mid march

just out with new mining plan and commitment to have fines up and running sept and all stage one uncommitted and stage 2 forward production sold.

have a look at the price action in this window

there are many questions that need to be asked imo

note -20M was first borrowed on the 31 oct 2018



$15 million of the $20 million Tawana Facility will be used to advance the DMS fines circuit, upgrade the tantalum circuit and for additional working capital.

To distract from the major loss of the offtake they needed a new mining plan, they had to imo as current 155ktpa wouldn't have generated the margin it appears for all the debt

At they time it was promoted how there was more production and lower costs than the previous QTR which was irrelevant

the new mining plan was for more production than the first plan

its costs were higher to nameplate and higher with a fines circuit than the original plan which forecast 83M per year profits from starter pit - but many didn't want to discuss this reality

to counter the loss of the offtaker which underpinned the entire business case, the new mining plan said it would sell all of stage 1 and all of stage 2 production , obviously so it wouldn't be spending cash building a stockpile like a fool, by doing that they would be able to provide financial certainty imo.

with this new plan the default for missing production and cost guidance in DEC imo was waived, (but of course you didn't know about the lenders issue until the accounts mid mar - the some people woke up)

Then there was the drilling program, again people got sucked into this, new mining plan would mean the LOM would fall based on current reserve and throughput rates projected

It subsequently had to raise capital to actually do this, it needed drilling because with such a short mine life its hard to sell stage 2 , and balance of stage on as well I suspect

I suspect they have put in another plan to the lenders recently that has been rejected which is what is subject to todays lenders update

as they aren't going to have fines operational in a couple of weeks, and they definitely haven't sold any off the uncommitted stage 1 which was in such high demand, and they haven't sold stage 2 lenders want answers.


No fines circuit would mean a change to the mining plan of JAN 15th, with no sales of uncommitted product or additional product promised - as I said the other day this would lead to consequences .

Apart from the spod stockpile there are also stockpiles which were going to be processed with this fines circuit resulting in more money / margin right.?..…………. consequences

See what happens tomorrow.

I'm still amazed that GXY and offtaker handed over more money for development of DMS, which was clearly borrowed imo back in oct with the first loan but which now has seemingly been taken and used for another purpose...…...working capital!

time will tell what happens,