RE: Investor presentation14 Dec 2024 19:03
That CRUX interview was actually the best interview Ive seen from CMET/Greg. More insightful and more detail than the recent Investors presentation IMO and very upbeat. Key takes for me:
1) Discussions with 4 potential off-takers. Would definitely be happy with 3 of them, although looking for just a single off-taker. They had talks with one of these at the recent mineral sands conference and they then conducted a site visit the week after which shows the level of interest.
2) Details of off take were interesting - figures suggested of a $10m advance from off-taker and on an initial $40m revenue annually that means an amount of the equivalent of 25% annual revenue advance. This is low and only 3 months worth of revenue. There may be some exclusivity period linked to this but not an issue.
3) Also speaking to 3 potential funding local partners, all respected and credible.
4) Equipment provider expected to supply equipment on finance. Interesting point was that the largest piece of equipment is only a $2m cost. GM mentioned that the reduced $20m initial capex is still "fat" and could still be cheaper yet but being cautionary with this.
5) $1.8m in bank. Cash burn is currently only $150k a month, and this includes the drilling campaign costs and the work on the Sourthern portion EIA which is ongoing. With an FID/funding decision potentially by end of March although quoted as Q2 2025 to allow for slack with China NY etc, they have more than enough funding to FID and carry out all ongoing work.
6) Doubled down on drilling campaign starting mid-December i.e. shortly.
7) Resources expected to be doubled from this drilling campaign without going below the water table. This is something they will look at in the future but no need at the moment or for some time.
Obviously its all about delivery now, but I have to say that interview made me a lot more confident. A crucial 6 months IMO
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