In its quarterly report for the three months ended June 30, the company says it has cash reserves of $21.4 million and reported a cash outflow of just more than $3 million.
The company is developing the Boikarebelo mine, its rail link and other infrastructure.
Preparatory construction of the 38km rail link is due to start soon. That rail link has been funded through a $US55.3 million loan.
Noble Group has entered into a strategic partnership and bought a 7.5% stake in ResGen for $8.5 million – equating to 40c a share.
ResGen is pursuing two pathways to debt fund both the infrastructure and equipment. These include negotiations with 11 project finance bank.
As part of this, the company is evaluating tenders for the supply and debt of mobile equipment and materials handling equipment for the coal-handling and preparation plant.
Along the way the company has signed several offtake contracts. This month Valu Investments entered into a 20-year export offtake contract for 1 million tonnes per annum, increasing to 2Mtpa from the beginning of stage two production.
Noble Group also increased and extended its export offtake to 66.5Mt over 35 years and also signed a domestic contract for 3Mtpa for eight years.
ResGen did lose a contract with Bhushan Steel but the Valu deal more than replaced it.
Along with an earlier contract from ECSC, those offtake deals underwrite most of the forecast revenue from Boikarebelo’s stage one production.
Construction of stage one is expected to take two years and, subject to agreements on funding, production is expected to start in late 2015.
All regulatory hurdles have been overcome, all necessary land has been acquired and the company has rail haulage and port access contracts sufficient for Boikareblo’s stage one production.
