@kewl2"I think that we have to find out what method CRK is going to use to fund the Cosmo mill before wasting time doing further analysis. Even if they get the cost/oz down to the $900US/oz level -- it is unclear how mgmt can fund the +$120M commitment required without raising funds somewhere/somehow.
Somehow the funds need to be raised or the mill doesn't get built in time and the benefit of Cosmo is delayed. Quite frankly I am surprised that we have not received an update from mgmt on this issue yet. I know that someone said they talked with Ashleigh and they said she said no PP - but ............... well I'll wait to hear how they intent to accomplish the Cosmo Mill financing...........!!"
Odds are that Croc will need further financing, but no way will it need $120M+. A good amount of capex has already been spent on Cosmo and the mill is $75M (A$80M). Working capital is ~$17M and current production should generate cash flow of $9M+ per quarter. Management is also reallocating capital from exploration activities and Tom's Gully development to keep Cosmo on track. They even decided to opt out on the $25M Marret credit facility which suggests to me that they a) don't need the financing b) can get a better deal or c) are stupid for not opting in. Market perhaps is suggesting c)