I was looking at recent presentation path to production..... Page 7, capital structure of EGA......... it has 12.4M in cash, 14.4M in unlisted options and 3.3M in performance rights...........
In Page 9 the initial capex required is 36.1M (Process Plant 24.3 + Non process Infra 3M + other owners cost 5.1M and contingency 3.7M) and then in the later stages they need another 12M (pre production working capital 10.9M and underground rehab 1.9M........ ref page 23 DFS)
the total preproduction comes to 48.1M
I was wondering how does Ega raise capital..... to my mind the cash thats there on the books they will be using it for exploration and drilling hence i am not considering any of it (Stand to be corrected on this please)......... so that brings us to 36.1M for initial capex......... Now are they gonna split this into debt and CR (IMO the current SP does not encourage a CR) so that will have to be a debt funding of 36M (can we get such a large amount?????)
If the above is true (which is going full debt no CR for initial capex, which IMO is the right thing coz current SP doesnt allow a CR)
then we are left with the 12M preproduction Capital............. this should take place atleast 1 year from now hopefully EGA would have shown enough progress by then to the markets to reward EGA with good SP............ then for the 12M CR would be good idea......
My wish is hopefully there is only 1 CR and that to when we are very close to production (for the pre production WC) with APPX 14M as unlisted options and appx 3M rights the SP has to be as close as to $1 to get good cash out of CR........... for this EGA has to show progress for 1yr and hope that market will take note of it
EGA Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
