In previous years/drill campaigns our funding wasn't contingent on the PPSA being signed but it's very clear that funding is entirely based on the PPSA now.
Scott's made it reasonably clear that IVZ won't be raising via capital markets any time soon and IVZ will farm-out a portion of WI% for future works funding. Potential partners will want the PPSA executed before they fork over cash so they know what terms their investment may deliver.
We already have a good idea of what the PPSA will be likely, roughly 50%-55% will go to Zimbabwe plus another 10% to the ZSWF. Partners will know this as well so once the PPSA is signed things should fall very quickly - funding, kicking off 3D seismic, procurement for flow tests and M3 or Baobab-1 or Basin Margin target tbc
If Scott and co. can show a very clear path to monetisation post PPSA we'll be back on track share price wise but if funding is just enough to get us across flow testing/3D then I imagine we'll be stuck at low levels for a while.
In my opinion the company needs somewhere close to $100 million to get to monetisation - cost of flow test/3D, new well/pilot plant, and I don't see a JV partner forking out that much when the company is worth less than that so I hope we get funding through a debt facility from a bank that is in this for the long term
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