Perspective on OverrunsLet's not overrate the effect of the cost overruns. They've booked $50 million in cost overruns, not unreasonable at a time when construction/drilling costs are going up for all mining companies, but the market's reacted by cutting nearly $200 million off the market cap since the beginning of the year. Seems like an unreasonable reaction to me.
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$50 million obviously squeezes Ram's current cash situation, but it means little to the long-term economics of the project. SJT 1 and 2 combined will produce $45 million in annual EBITDA for 40, 50, perhaps 100 years.
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I don't care if they spend another $50 million to get the project finished! The project's worth billions and billions in revenue if it gets completed and it produces to nameplate capacity. Which it will, because most of the important work is done, and all of the work is funded.
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These gloomy mutterings about dilution don't make any sense.