LRS General Discussion, page-18500

Given how dire the sector sentiment is, this is probably hopium but my assumption of what mgt are thinking is below.

There is some basis for me setting out these prepayment amounts (A11 have publicly stated they have asked for $75m - $100m in prepayment for their offtakes as well).

- August DFS will be a SP catalyst as it will show a new output scenario as high as 800ktpa (~3 years after first production), plus AISC costs to remain consistent with PEA (demonstrating that we can make money at most SC6 spot prices).

- Followed up a week or two later by an offtake with up to $100m cash prepayment - which would be an obvious catalyst for the SP (which could be made larger again depending on who the party is who signsw ith us).

Hopefully after this news flow the rerate puts us back up at least to ~25 cents and we raise somewhere at these levels for working capital (although as you say, there is going to need to be another larger equity raise at some point - unless they plan to raise the entire balance of capex via debt financing).

Another scenario could be the potential for them to sign not just one but two offtakes and both have prepayments attached, which could raise a total of ~$150m, leaving just the $100m for debt financing (consistent with Sigma's debt finance amount).