CZL 0.00% 4.8¢ consolidated zinc limited

I would be surprised if they can achieve all they want to in...

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  1. 609 Posts.
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    I would be surprised if they can achieve all they want to in 2019 using cash-flow.


    The next step is most likely going to have to be a capital raising or (preferably) a new debt facility to fund the expansion and exploration. At Dec 31 they had just under $1m in cash and receivables. On the flip-side fixing the ramp (completed pre Xmas) and the proposed expansion and exploration will cost alot of money in the coming 6 months. During that time the cost of production per tonne is also likely to be high due to the lowish volumes so hard to guess whether it will be generating net cash.


    With production ramping up I would hope there is enough credibility there to raise debt funding though. I agree things look promising but I'm just trying to be a little pragmatic regarding the financial situation. The share price is still low so a capital raising would be very dilutive. Debt would be a better outcome for shareholders at this point I would think.

 
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