thought we had 12 months ..., page-18

Unfortunately its worse than that ...

Any plant expenditure should be classified as capex and the cashflow statement doesn't include a forecast for capex.

All of the $17.5m in forecast Exploration, Development, Production and Admin costs are operating expenses so any funds spent on:

- interest payments;

- loan repayments (I don't believe there will be any of these until the December quarter, but there is a $2.5m loan repayment due in that quarter); and

- Capex

are over and above the cash outflows disclosed in the Cashflow Statement.

In order that CCU avoids trading while insolvent, it has to be sure that either production in August and September exceeds nameplate capacity or the POS increases significantly in the very near term.

I'm not sure that you can rely on either of those eventualities in order to claim solvency.

Seems to me that another capital raise is inevitable.