"The company is currently well cashed up and has remained debt free for the past ten years. Debt funding is being considered for the balance of the funding required to bring Rocklands to production and discussions are well advanced with a number of financial institutions. In addition the company has not ruled out a combination of debt funding and shareholder participation."
This is pretty clear they need more than they have to get it running, at least safely. This paragraph is, IMO, the prime reason the auditor mention what he did, and rightly so.
Part of the reason why this stock is running at $2 or there abouts is because the directors have done a great job so far. The risk of not getting the cash is pretty low.
It seems that if a TH was enacted now and a successful private placement was to occur then the open after the TH will probably gap up, as considerable Risk has been removed.
I've got my eyes on this stock at the moment. My main concern at the moment is the estimated average cost/ton or extracted, this information I'm having trouble finding in my short inspection, the share price indicates it is probably good.
CDU Price at posting:
$1.96 Sentiment: None Disclosure: Not Held
