capital raising, page-12

CCU could be insolvent tomorrow if the bank calls in its loans.

Having the debt makes it more difficult to raise working capital through equity - especially as some of that equity is being used to retire debt. They burned $8m last qtr, and had $10m in the bank 1st Jan 13. They are spending $12.5m this qtr. If they maintain current production of 100,000oz per month that'll give them about $8m, so they'll burn $4.5m this qtr, and could do that for next qtr too, by which time the ball mill will be operational.

But they also have $24m of debt.

No divis for a while even if everything goes swimmingly, unless the POS does go to $60.