My view…16 Jan 2024 18:41
My views nothing has changed with some major milestones
1. #TGR are at break even point with production figures of 7500 expected for H2.
2. With increased production this will drive the gross margin back to levels not seen by other producers.
3. Cash flow is tight but TGR to date have continued to manage cash flow and imo will only raise to increase production.
4. Accounts receivables in latest set of account £6m versus £3.4m payables. Charging this with suppliers and VAT payments will his accounts soon.
5. TGR has virtually 0 debt.
6. #TGR has a market cap near #BRES when we expect to be cash flow positive with other suppliers forecasting at spending £50m to get to 30k capacity. I have just topped up and expect to be at 40m market cap in 12 months.
All depends if poddars can deliver. My view is they can, they know graphite more than anyone and look back at what they have done within 3 years. No other company has grown how they have. Yes issues with governance but any growing com has issues #TGR
Second point is the concern in accounts on 6m CLN. I think people have misread this. TGR are looking at all available options but do not need to raise
“ the Company's current established capacities and operations provide reasonable basis to assume that the Company can continue to meet its costs and cash requirements at the consolidated level with its revenues.
While the Company has been in a stringent cash position during the period under reporting, the Company continues to produce, sell and realise sale proceeds within its available resources. The Company is engaged to explore possible routes to ease its liquidity position including realising VAT refunds, banking facilities at subsidiary level and, in the meantime, it continues to manage its business within the available resources.
Taking in to account the comments above, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, given its current resources, installed capacities and operations, and growing sales and revenues which are expected to add positive operating cash flows, ability to raise finance for which the Company can use and leverage for its future growth.
Were the Company unable to meet its cash flow needs from its current revenue resources, the Company shall not hesitate from raising any gap funding and the Board believes and has demonstrated that it has the ability to do so. Therefore, the Company continues to adopt the going concern basis of accounting in preparing the financial statements and is of the view that with the development of the business and creation of capacities over the past few years, it has attained the status that it shall remain a going concern for the foreseeable future”
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