Can't argue with those positive results - great to see.
Calling this company a start-up is a bit disingenuous, they've had years to get their house in order. Rather than keep it private and reap the rewards they've gone public to raise cash and started mining without processing in place. It's reasonable that they are being queried on their cash flow outlook, especially since none of the players have successfully started a company or mine like this before.
All the ore in the world doesn't count for squat if you can't process it. FML, FMR (unlisted), NST and others all have mills in the vicinity so its a wonder they haven't locked more than 100kt in yet. I hope no news is good news - that's why I'm still a holder.
For all intents and purposes they started mining back in July or perhaps earlier - the equipment was on site and had made huge progress clearing the site by Diggers. The mining invoices will be starting this month if they have 90 days terms (as suggested on this forum previously, if I recall correctly). How long will it take them to mine 100kt once they put the first batch on the ROM, 2 months tops? (serious question). If they haven't sorted something by then they'll be looking at circa 6 months of mining costs (again, serious question, what's that, like ~$15 million?) with whatever revenue they got off the first 100kt to survive. The total operation was meant to generate ~$130M , so unless the first 100kt accounts for 1/10 of the revenue (its ~1/15 of the total inventory but higher than average grade, so quite possible) we're in a very uncomfortable situation.
If we get through this period without imploding, grow Geko, and discover a future through exploration, we're looking good - and lucky. Until then, it'll be a white knuckle ride.
CM1 Price at posting:
12.5¢ Sentiment: Sell Disclosure: Held
