Mawson West Ltd Ord MWSWF

RE:Bonkers, I can't figure this one out

[bobvee15]

The current prices does look tempting given the amount of sell off it has incurred but my assumption is they need more money and institutions know this which explains the selling in the stock . They burned through 11 million in October as shown in the Nov 4 press release and was down to 12 million in cash. Dikulushi still has mining dilution issues and is far from being profitable. So I think it is very likely they are out of cash by now and need more.

Another issue is I do not know what the rate of interest for the 50 million loan with Trafigura. The 43-101 discounted 10% NPV value at 3.25 copper was technically only 46 million since the number did not include the 110 million in  construction costs. (Very cheesy IMO).  I think Kapulo now is pretty close to a point where it can't make all in costs especially if you assume financing costs of the loan at 10% with the recent reduction in copper prices.