The $40 million is at @speculator101 's estimate,'k not a fact...

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eshmun

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18/01/19

23:11

Post #: 37161387
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Originally posted by stockfanatic ↑

Originally posted by speculator101
Hey Esh,
great pick up there. That is a material increase in the AISC, I find it a bit poor they don't just own up to it on the front page.
Does this change your view on the project overall? I realise with the higher AUD gold price right now, the increase in costs is muted, but still?
I only glanced at the quarterly to check their cash balance ($1.2m).
Obviously they have to undertake the capital raising this quarter, which will in turn allow them to meet whatever covenants Mcq require, to then lock in the hedge of 250,000 ounces.

I still think they need to raise at least $40m. I am sure the brokers are lined up considering how long they have been in this process of actually financing the mine.
Assuming they will need another $40m cash, I am thinking Nero is eyeing the $40m. Armed with 5% stake, if they took over, they could dilute 50% shares at cheap discounts for 10x increase in holdings at half the cost. So I do not think they will be tempted to add on more holdings.

Question is how will management fund this.

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The $40 million is at @speculator101 's estimate,'k not a fact or a figure stated by the company.

The. company had a May 2018 total upfront capital cost estimate of $131 million with $107 million just raised via debt funding, meaning the shortfall on upfront capital estimates is $24 million.

I wonder what effect the move to contract miners over "owning" the mining fleet will have on the upfront capital requirements for the project. Is it a move to try and reduce equity capital dilution? Esh

Last edited by eshmun: 18/01/19

CMM Price at posting: 7.0¢ Sentiment: Hold Disclosure: Held
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