How much money does Nautilus still require?

[observer]

I am sure there are people here who have crunched the numbers.

What sum would Nautilus have to raise in order to be able to start production in Solwara I - assuming that PNG is willing to take its 3 x 5% options, which add up to 120 million (if I remember correctly)?

[EuroJohn]

I am sure there are people here who have crunched the numbers.

What sum would Nautilus have to raise in order to be able to start production in Solwara I - assuming that PNG is willing to take its 3 x 5% options, which add up to 120 million (if I remember correctly)?

Good question... I am considering buying some shares and have to say that I don't really see through all of those agreements. It's pretty complicated..  Is the cost of the ship being shared with MAC? How much does the ship cost?

[seascandive]

EuroJohn,

I believe Nautilus will need to pay $8MM upon delivery of the ship. They have a reduced day rate during shakedown and then they will pay the full day rate (~$200K/Day) while in production. This is a similar rate to DP drill ships of the size and scope. So, They don't need to spend the $300MM or so to pay for the ship upfront. The only caveat being that after next year Nautilus can't cancel their plans without being liable for the ship costs.

I think they will still need to raise some capital but, no where near as much as if they had to pay for the ship outright. I think most of the robotic machinery, riser and some of the pump has been paid for (this is from memory so, I don't swear it's completely accurate!). They will need some additional OPEX and reserves for commissioning everything and for getting through first ore. Hopefully Shontel (CFO) will be able to provide a clearer spend plan during the upcoming conference calls this year.

[maui4marko]

EuroJohn, I believe Nautilus will need to pay $8MM upon delivery of the ship. They have a reduced day rate during shakedown and then they will pay the full day rate (~$200K/Day) while in production. This is a similar rate to DP drill ships of the size and scope. So, They don't need to spend the $300MM or so to pay for the ship upfront. The only caveat being that after next year Nautilus can't cancel their plans without being liable for the ship costs. I think they will still need to raise some capital but, no where near as much as if they had to pay for the ship outright. I think most of the robotic machinery, riser and some of the pump has been paid for (this is from memory so, I don't swear it's completely accurate!). They will need some additional OPEX and reserves for commissioning everything and for getting through first ore. Hopefully Shontel (CFO) will be able to provide a clearer spend plan during the upcoming conference calls this year.

Agreed SSD.  As a reminder, the last capital raise completed by the Company was a rights offering for net proceeds of $36.7 million which was completed on June 11, 2013. Per CEO Johnston, Nautilus has enough cash on hand to fund ~1 more year of operational expenses.  That leaves ~2 years expenses to raise, plus the remaining large items.  

Here's my SWAG:

Vessel down payment, remainder  $8M
Tongling refiner concentrator  $12M
G&A - 2 years  $25M
Exploration - 2 years  $10M
Develop Env. Plan & Monitoring  $2M
Community/Social activities  $2M
Technology  $1M
Development - PSV, SPT  $10M
FOREX/Interest/Credit  $1M
Contingency/Other  $9M

TOTAL ESTIMATED CAPITAL NEEDS:    $80M

Since we're obviously not privy to the company's financial plans, this should be taken as just a wild guess, but does give a roundabout figure for comparison/discussion.  If the above estimate is close to reality, and if PNG opts in for their next 15% for $120M +/-, then based on this estimate they would not need to raise any further capital.

[EuroJohn]

EuroJohn, I believe Nautilus will need to pay $8MM upon delivery of the ship. They have a reduced day rate during shakedown and then they will pay the full day rate (~$200K/Day) while in production. This is a similar rate to DP drill ships of the size and scope. So, They don't need to spend the $300MM or so to pay for the ship upfront. The only caveat being that after next year Nautilus can't cancel their plans without being liable for the ship costs. I think they will still need to raise some capital but, no where near as much as if they had to pay for the ship outright. I think most of the robotic machinery, riser and some of the pump has been paid for (this is from memory so, I don't swear it's completely accurate!). They will need some additional OPEX and reserves for commissioning everything and for getting through first ore. Hopefully Shontel (CFO) will be able to provide a clearer spend plan during the upcoming conference calls this year.

Agreed SSD.  As a reminder, the last capital raise completed by the Company was a rights offering for net proceeds of $36.7 million which was completed on June 11, 2013. Per CEO Johnston, Nautilus has enough cash on hand to fund ~1 more year of operational expenses.  That leaves ~2 years expenses to raise, plus the remaining large items.  

Here's my SWAG:

Vessel down payment, remainder  $8M
Tongling refiner concentrator  $12M
G&A - 2 years  $25M
Exploration - 2 years  $10M
Develop Env. Plan & Monitoring  $2M
Community/Social activities  $2M
Technology  $1M
Development - PSV, SPT  $10M
FOREX/Interest/Credit  $1M
Contingency/Other  $9M

TOTAL ESTIMATED CAPITAL NEEDS:    $80M

Since we're obviously not privy to the company's financial plans, this should be taken as just a wild guess, but does give a roundabout figure for comparison/discussion.  If the above estimate is close to reality, and if PNG opts in for their next 15% for $120M +/-, then based on this estimate they would not need to raise any further capital.

Thanks MM. I don't remember where but I believe to have read that the company has a cash burn rate of about approx. 10 million per month. Maybe now that the seafloor mining tools are almost complete this figure is no longer accurate. 80 million sounds like a pretty small number  It would indeed be good to see a spend plan....