Did anyone notice these large amounts in the quarterly cashflow?
Development (operating activities) = $7.997m
T
he TAW September quarterly only expended $0.222m for this item and estimated only $2.876m for December quarterly.
So why the large increase? Could it be related to the water management issues and the tailings dam?
Note the scheme booklet (Aug-18) confirming "Tailings from the concentrating facilities are being discharged into a historical pit (Boreline). This pit has
almost reached capacity, and
capital expenditure to lift the pit crest will be required in the coming months. SRK understands that preliminary cost estimates for the establishment of a dedicated tailing storage facility and associated infrastructure have been
developed and awaiting final approval."
Note that the March quarter has a further
$6m development outflow. What are we developing?
Property, plant and equipment (investing activities) = $5.366m
Another large expense. Are we to assume this relates to the fines circuit?
As mentioned in the December activities report, "Ordering of long lead items commenced".
Debt costs & merger costs = $7.5m
Note the scheme booklet "Tawana in connection with the transaction....estimated at approximately $4.5 million (ex GST)." "AMAL in connection with the transaction...approximately $3 million (ex GST)."
Or have some of the above costs relating to the transaction been paid pro-rata?
I would assume these costs do not include the WA stamp duty (estimated at ~$10m). "We consider it reasonable to assume the actual assessment and request for payment could be expected around May 2019, however it is also reasonable to assume the Proposed Merged Entity could apply for a six month extension (~Nov 2019) on payment with an appropriate interest charge as consideration."
