Just got wind of this team however on rapid face value there are a couple of things that spring to mind. It appears that they will have a need for cash quite soon...lets say they raise $5 million...is that enough for now given they are going to start drilling soon plus is there a capital requirement to pull the idle treatment plant out of mothballs and get it running again? How much? $500k to $1 million? Operational costs plus ongoing production costs? How many shares on issue now? 900 million so it looks like a 33% dilution quite soon. IMHO. how long will that money last before another CR? The idle plant looks like it wuld generate only about $1 million p.a. return...very rough calculations so don't shoot. If they spend to get the idle plant up to capacity it is only $3 million p.a. return working full time no down time or other expenses. We will be at 1.2 billion shares soon with CR and another CR will see 1.5 billion shares on issue. Way out? Takeover but do the sums justify the job? SP may go up somewhat but then what? Best to wait for the impending (my take) CR to see what gives. Seems like a slight SP pump coming up pre CR. 300 million shares at 2 cents it looks like to me. It looks OK but plenty of work to be done yet IMHO so plenty of time required to see increase? IMHO. DYOR.
ODY Price at posting:
2.0¢ Sentiment: None Disclosure: Not Held
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