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This extract is from a RNS released today in another company, spot the difference with the GCAT RNS and you're deliberately left to make you're own interpretation of the timeline.
The net proceeds of the Subscription will provide the Company with working capital to support the strategy to progress... through the next 16 months on the Company's current cost basis.
GCAT RNS
The funds will be used for working capital by the Company and its subsidiaries.
I don't rule anything out with small caps.
Everything contained within a RNS is always open to interpretation. The latest raise was for working capital for the company and it's subsidiaries.
Working capital funding refers to the financial resources a company uses to cover its day-to-day operational expenses and short-term liabilities. It's essential for sustaining regular business activities, such as purchasing inventory, paying salaries, and covering utility bills.
We're not privvy to the negotiations between the Company and the FCA, so everything is conjecture.
But the reason I say June is two-fold,
After June the Company will need to do another audit and secondly by my estimations, the latest working capital raise might not cover beyond June.
Probably best not to expect too much from the company,
The October RNS mine plan indicated 1365 oz per month production after the expansion. Which is over 30% more than Goldplat's plan.
If you were the lending company and you looked through the financials and production since the company was formed, it would be doubtful whether you would lend to any company teetering on bankruptcy.
RM can say whatever he wants but can't escape the audited financials, if the company is to remain listed.
Interesting, I've got their additional spending average per month since suspension at $388k.
So, the latest fundraising should last until sometime inJune, if they continue to spend at the same rate above operational cash flow.
Apron, we have a reasonable handle on the likelihood of the audited results as the gold production / sales is already published.
The high-grade material was mostly used up by the end of June to inflate the production figures.
It's the interims July to December that will contain the most worrying figures and RM knows this, so he has to come up with something to counter the pending bad news.
Let's see what happens.
I said all along they wouldn't get the prospectus without publishing the accounts and it looks like the FCA has now included the interims.
I made contact with the FCA months ago and yesterday's RNS confirmed what they said to me.
'To finalize the prospectus will require the publication of the audited accounts of the Company for the year ended 30 June 2023 and the unaudited interim results for the six months ended 31 December 2023'