The Burn Rate"how will they pay for this, they cannot use the SJT 2 construction loan to pay for operating losses and immediate interest on long term debt. please enlighten me how they are going to avoid a financing at around 20 cents.
from q2 CF statement
they burned 112 million during the first 6 months of the year
112,000,000 / 6 = 18.666 million dollars burn rate per month."
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Wasn't the majority of the burn rate from the first 6 months of the year spent on drilling for SJT2 and Orita? Now SJT2's drilling and construction costs will be funded by the $140 million dollar debt facility. And Orita's been put to the side, so no burn rate there.
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$32 million seems like enough cash to pay for interest payments and operating losses for the rest of the year. Once SJT1 is in production that substantial revenue will be plenty for debt service and operating costs.
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Ram will be cash-constrained in terms of drilling and development for its other projects (Geysers, Casita, etc.). So a financing next year (once SJT1 is proven to be a successful project and Ram's stock price recovers) may be in order.
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A financing at 20 cents in the next couple of months seems unlikely.