GXY galaxy resources limited

something doesn't add up, page-4

  1. 1,559 Posts.
    Update: In GXY's latest presentations I found the cost of building Mt. Cattling was upped to 79M in contrast to DFS estimates of 68M. Also, the Jiangsu capex costs were estimated to be 55M. Lastly, they list working capital needs and ZJG land at 11M. Overall, total capital costs sum up to 145M there. Not too far from my estimates.

    Also, on the last slide of this presentation they say Galaxy was "fully funded", had a "current cash position of 65M" with another "137M to come".

    So again, they have 200M cash available to them, a 130M loan facility available, Mt. Cattling and Jiangsu have been funded by earlier financing rounds.

    At the same time our Chairman justifies the latest 120M placement by stating "The majority of the capital raised will be used for working capital and ramp up requirements at Mt Cattlin ($49 million) and Jiangsu plant in China ($35 million) [...]"

    What exactly does he mean? Are those 49M and 35M in ADDITION to the costs that were estimated in the feasibility studies (and that have been taken care of in earlier placements)? If so, are they planning for expanded production or have costs been going through the roof? If it is the former, why haven't we been informed and if it is the latter, how on earth could that happen and who is going to be held accountable for it?
 
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