Morning fellow IVR-Fers.....this is a bit of a brain dump re: the current CR and the most recent QTR report.....I'm wanting to better understand the company's focus and immediate next steps. I do ask a question below re: milestones and 2023 definition of success
CR TIMING
From the CR Ann:
Investigator’s Managing Director, Andrew McIlwain commented in relation to the placement:
“We are delighted with the support for this raising at a time of some uncertainty in the capital markets – particularly from Jupiter our largest shareholder - and existing shareholders, as well as seeing some new institutions come onto the register. “Planning of raising funds to support our ambitious 2023 work program has been under consideration for some time. Whilst there is rarely a “perfect” time to come to market, Investigator’s directors took the pragmatic view not to start 2023 with investors knowing that a raising of funds during the year would be likely. With this raising adding to our current cash balance, we can focus on delivering the key exploration outcomes planned in 2023. DF thoughts: fair enough...the above explanation makes sense.
DF thoughts:
- So what they're saying is bring forward the need for additional funds this year (2022) Vs going into next year with low funds and SP and investor anxiety.......makes sense.
CR amount raised ($4.2M)
From the CR Ann:
Investigator Resources Limited (ASX: IVR, “Investigator” or the “Company”) is pleased to announce that it has received firm commitments to raise A$4.2 million through a share placement. Funds raised will be used for development studies and exploration activities at the Company’s
100% owned Paris Silver Project, regional exploration and the initial work on the recently announced earn-in on the Molyhil Tungsten Project."
DF thoughts: - How much of the $4.2 M will they pump into Tungsten exploration activities? 50%, 25%, 60%?
- In the CR ann they state "key focus and priority remain on the advancement of our 100% owned Paris Silver Project.....towards the completion of the Definitive Feasibility Study." OK, good!
- "A key component of this work will be targeting the economic recovery of the lead contained in the resource, which has the potential to add significant upside to the Project’s value (the Pre-Feasibility Study did not incorporate lead recovery). " Ok good.
"At the completion of the current drill program targeting the southern extension of the Paris resource, anticipated in late January, the drill rig will move to Apollo to follow up on the successful drilling undertaken earlier this year." OK, this is good.
Overall funding available
- Using the last QTR (see screenshot below), IVR's cash burn rate is ~$2M per QTR.
- Thus, the $4.2M raising will provide ~2 QTRs of funding.
- They claimed 2.2 QTRs funding left as at 30-Sep-22 (as per last QTR)....so 2.2 + 2 = 4.2 QTRs of total funding....but we should subtract funds used in the current Oct-Dec 2022 QTR as the QTR is nearly gone.
- So we have ~ 3.2 QTRs of total funding once the CR comepletes (which equates to ~$6M).
- In conclusion, this will see IVR through till Sep 2023, theoretically. Some will claim the $4.2M CR wasn't enough (fair comment), but it should buy the company at least 6-9 months until the next potential CR, imo.
2023 Investor Milestones / Definition of Success- Regardless what the company says they want to achieve in 2023, I'd like to hear from you guys what you'd like to see the company achieve before the next CR.....DFS, resource size increase, major REE news? Put differently, what do they need to deliver to ensure continued success?
DF
Source: Ann: IVR Raises $4.2m to advance Paris and Regional Exploration
IVR - QUARTERLY ACTIVITIES REPORT 30 SEPTEMBER 2022Source: Ann: Quarterly Activities and Cash Flow Report
IVR - QUARTERLY ACTIVITIES REPORT 30 SEPTEMBER 2022Source: Ann: Quarterly Activities and Cash Flow Report
(20min delay)