“September/October - will Surda finally be cash positive” ?
It will definitely be an interesting month ahead. What appeared to me to be a very noticeable exclusion in the latest announcement was in reference to becoming cash flow positive in September.
The following was mentioned - “Production rates at the Surda project continue to increase in line with forecasts and the project is on target to reach full production levels during September 2008. This will signify a major milestone for the Company with Surda expected to achieve a cash operating surplus before capital requirements.”
When reading the announcement it would be easy to assume that full production will mean Surda becomes cash flow positive. But I assume nothing with IRL and its management after the MON disgrace. Without any details regarding the finance agreements in place with HCL who knows what production levels or at what copper price is needed for Surda to simply break even?
Still so many if, buts and maybes for me to put more hard earned into this one HipHop. Although it was an extremely positive development in regards to PEB, IRL must get Surda running profitably. Its an absolute necessity and the only thing that will positively influence the shareprice. At least the Noble Group deal reduces the likelihood of capitol raising at current shareprice levels and therefore saves us further company dilution! ( for now )
IRL Price at posting:
5.6¢ Sentiment: None Disclosure: Held
