Does anybody know what the current funding position is of the company? From memory the company had about £2m in cash at year end and I estimated cash burn at between £1.5 and £2m per annum, although no feeling as to how expenses will ramp up with the increase in production rates.
It would seem, therefore, that the company has enough cash to last approx. 1 year by which time diamond sales will be generating decent earnings and the shares should have been rerated. I trust the company will go down the short term borrowing route to cover short term cashflow needs rather than another highly dilutive fund raising before the shares are rerated.
The management of the company need to be very careful to consider the impact on existing shareholders and not just new shareholders when considering future fund raising.
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