Bottomline: Cash and bullion on hand at end of September 2018...

Bottomline:

Cash and bullion on hand at end of September 2018 $22.6m, plus whatever they got from the $5m SPP in October - so a possible $27.6m

Outlays forecast for the December quarter = $42,0m

Estimated production for the December 2018 quarter = 19,000 to 22,000 ounces

Given the estimated production and assuming an $1750 average price for gold sold (not sure what the impact is from hedging) their revenue in the December quarter would be around $33.3-38.5m, which implies a deficit on activities of $3.5-8.7m. This is a simplistic assumption that all gold produced is sold in the quarter and does not account for bullion on hand.

When reading the quarterly its clear they had to raise money to fund capex last quarter - they simply would have run out of funds and now be in the hands of the banks.

Grade reconciliation has been a bit of a worry - not sure if its been fully sorted out and what the implications might be for future production/revenue, especially during the first two high stripping cost years.

The quarterly gives enough justification why Dunbar walked the plank.

Perhaps its safer to wait for the release of the December 2018 quarterly report before taking a punt here as its likely to be cashflow negative again.

loki