RE: Thread29 Jun 2022 13:39
Important to note that the thread does not rule out the possibility of a placing in the future at some point.
I would suggest the following, however:
1. Funded from IPO + 90p fundraise + potential positive cash flows starting from this current quarter with majority of capex costs mostly already made as in final stretch of putting the plant together.
2. Hydropower basically done, per last RNS due to being commissioning in July, so can't be much more to spend on this, and which will serve to reduce opex costs. Note also the CFS should bring more opex savings, freeing up more money for below items.
3. indeed, and actually more like £0.85m with FX rates.
4. Exploration expanses budgeted for in IPO raise and paid in instalments most likely as work is progressed/completed.
5. I don't think these rights are that expensive in the grand scheme with land lease payments up to 31/03/2020 being only £37,767 per the admission doc/prospectus.
6. the roads are likely the main question as you have emphasised - but if cash flow is positive from this quarter/the next then this need not be too much of a worry - of course depends on how much exactly this costs - perhaps the studies referenced in the RNS will revealed when they are complete and will provide greater clarity?
My thoughts are that with cash positive/ profitable operations hopefully being reached this year, then as a company with little to no debt (roughly £1m in CLNs) and with a growing production and sales profile debt funding may be looked upon much more preferably for future needs. 30,000tpa capacity is a globally signifcant/comfortable scale.
As a current producer just starting its ramp up phase TGR is in a much better position than those without any revenues, let alone a short term path to profitability. Looking forward to those next results as well RIS as that will reveal the true state of play.
GLA
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