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Who will put up the funds?, page-2

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h00ts

46,741 Posts.

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03/03/16

17:47

Post #: 17180786
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Originally posted by jantimot ↑

With the possibility of the operating costs being $200m more than included in the DFS, the $100m loan omitted from the cash surplus, no provision for loans or dilution to provide the $64m to complete the plant to +ve cash flow and a host of other unclear costings/assumptions (no provision for contingencies, for example, or shipping costs from Townsville, or commissions to COW) the risk to anyone putting in more equity seems great that it would never be returned.

What is the risk to a lender? How will they view the DFS? Is it a BFS? Huge risk No. 1 is obviously that the $64m won't be enough. I bet there is no contingency in that figure either, for all the old plant not working immediately, requiring replacement parts or redesigning - none of that is covered by any guarantees. CDU is on its own with the commissioning if there are problems. And any delays will require more working capital as the time to +ve cash flow is pushed back.

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Im betting those crusty long termed faithful are sitting back now having a warm cup of horlicks making phone calls to sisters and pharmacists and they have dissected the whole 92 pages of the DFS and come with these 2 highlights to base their investment decision in the rights issue on !!

Page one !!!

Page 7

Last edited by h00ts: 03/03/16

CDU Price at posting: $1.11 Sentiment: None Disclosure: Held
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Who will put up the funds?, page-2

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Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

BCI reaches close of funding facility for salt-first part of Mardie project

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

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Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Buxton projects new graphite province discovery at WA Narryer play

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