What happens next?, page-81

"$100m plus cap raising coming"

And?

Companies make value for shareholders by identifying, developing and implementing value adding projects. Scoping studies with a positive NPV based on sensible assumptions and a high enough NPV are a good proxy for value adding projects. Everyone knows and agrees that EGR hasn't got to the implementation stage of this process. I suspect most, if not all shareholders are frustrated by this. If EGR raises the cash you suggest, it has convinced serious money that they will implement this time, otherwise the money just wouldn't be raised. Depending on the raise price and number of shares issued, shares on issue increase out to somewhere around a billion if A$100m is raised. EGR appears not to what to do a rise that big, but it may be the only way forward.

The last Epanko financials were an NPV of US$348m (which is after deducting capital costs). If Epanko has been built, a crude proxy for the value is the project NPV plus any element of the capex of the project that has been cash rather than debt financed. An Epanko NPV of about A$500m + $100m of capex = A$600m (around 60c/share if 1b shares are on issue). If EGR is progressing projects to implementation, there is potential upside through profits from recycling and spherical graphite, further expansions of Epanko beyond the metrics included in the 28 April 2023 scoping study and if study assumptions prove conservative. There is downside if Epanko assumptions are overly optimistic.

At this stage I think shareholders might find 60c+ a good outcome from where things are now. Of course there isn't going to be much movement until potential and existing shareholders start to believe the story and put increased probabilities onto robust cash flow occurring in the future (and ideally not too distant future). There also needs to be confirmation of where the capital for Epanko will come from.