financial position and mt magnet

According to the quarterly, as at end March MON now has $26m debt (it appears that they have borrowed $15m this quarter from TTY, but repaid $3.3m to it or another party).

In the April quarter, it will receive possibly $10m from asset sales plus $9m from the recent share issue. I find it hard to believe it will succeed in placing the shortfall from the issue anytime soon, given that the current share price. So, a total of $19 million cash should come in the door this quarter. Given ongoing development / capex costs, I doubt if operations will be all that significantly cash-positive in the current quarter, but I could be wrong here. I estimate there will be about $4 million in exploration, evaluation and administration costs.

In terms of the Mt Magnet deal, they must pay $14m cash by end June, get the bank to fund $11m in environmental bonds, issue $20m of shares and $15m convertible notes to Harmony.

So at the end of June (unless there is another capital raising or something), I calculate that MON will have close to zero cash, around $26m debt, issue maybe 60m shares (assuming they are issued at around the current share price) do the bonds and the notes.

I think its a big ask. However, MK has had the ability to do big things in the past. I wish him, MON management and shareholders the best of luck.

I happy to be corrected on any of the above. They are just educated guesses based on certain speculative assumptions - as always do your own research and certainly DON'T trust me.

angus