It is a large spend this quarter coming, but expected. Still, you raise a good point.
We do have some MacQuarie facility remaining:
- The company update on 3 October notes that we have secured $7.5m facility from MacQuarie to assist the GAP funding shortfall.
- This quarterly presented that we have drawn $5.0m from the facility but under note 8 on page 4 the quarterly suggests we still have $7.5m undrawn. I think this should be $2.5m undrawn given the main facility is an amortising loan and we couldn't draw back down on this.
- If my thinking is correct, using only this facility we would need $9m in cash receipts to get through the quarter to keep our head above water....looks achievable?
In any case, if we do need additional funds, we have options:
1. We also have a $10m facility with Long State Investment by issuing upto $250k of shares over any 5 day trading period.
2. We may ask IPL nicely if they can advance some funds up front to help our working cap position before quarter end. It's quite normal for Co's to do this for cash management purposes (we do this a lot at my Co...but shhh).
All in all, I think we will be fine from a cash perspective.
CTP Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
