You are correct - the $1mil was part of the potential $4mil further commitment from the SI's, which is a very positive sign, especially given where the SP is currently at.
The quarterly financials are to June 30, so this additional cash has not been recorded. i.e. GMC have $6.3m in the bank. They need $15-20m to reach production from here, so potentially need to secure another $10m before SH's go getting too excited. A licence to export untreated ore would certainly help get closer to this target, but GMC first need to secure that supply - which is the biggest concern in my mind.
Consider that to produce 31,640 tpa of FeMn alloy (the suggested annual production from 2 smelters), GMC need to purchase 65,847 tpa of Mn ore. We don't know what margin could be on the sale on untreated ore, but I have seen @TheMole estimate $100-$150/tonne in the past. It's only speculation at this point.
If GMC have the capacity to purchase that amount of manganese (and I'm yet to be convinced they do), they could potentially generate $6.5-$10m from exporting the ore over a year, but that would mean the smelters wouldn't be operation for at least an extra year on top of what GMC have stated. So they must have other plans to raise those funds if they're to achieve their production timeline.
I also seem to recall there being a limit on how much ore a producer was allowed to export while they're in the development phase, although I believe it was to be assessed on a case-by-case basis.
GMC Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
