Dec Qtr they produced ~20k tonnes from Cascade (annualised annual production 80ktpa) and 59k tonnes from Takitimu (annualised 240ktpa) but Net Operating Cashflow was negative $3.6M.
They don’t mention Takitmu much in their investor presentation but they did pay another $7M for the completion of its acquisition on 10 January 2013.
Cash Position at 31 December 2012 is A$35M (net of the Takitmu purchase) = $28M. That will be reduced again this qtr by the continued negative operating cashflow from low production
To ramp up to Phase 3 - 750ktpa they need NZ$35.6M... they also mention that this is required to get positive cashflow
My gut is saying, that the first ramp up will include a capital raise to derisk the NZ$35.6M investment (some will be done via debt and current cash).
Once the ramp is successful, they will have a proven track record and the next one NZ$60M - NZ$90M to 1.35Mtpa is more likely to be done mainly on debt.
BTU Price at posting:
39.0¢ Sentiment: LT Buy Disclosure: Not Held
