AVB 0.00% 16.5¢ avanco resources limited

well what can one expect? avb has no cashflow yet and will be...

  1. 833 Posts.
    well what can one expect? avb has no cashflow yet and will be turning dirt into cash for the first time. there are multiple scenarios such as comissioning failures, construction risk, metallurgical risk, cost blowouts etc. for a bank to provide debt, they will require plenty of due dilligence and have limits to risk exposure. instead of focussing on saying BV is only comitting 30m, how about the following facts.

    1. BV has already approved the term sheets and completed their due dilligence for 30m.
    2. they are lead banker to syndicate funds. if they cant get all then avb can nominate others.
    3. BV will provide 30m, blackrock 12m, and existing cash of 20m++ against the remaining 28m from syndication. shortfall of debt funding can be met with existing cash.
    4. BV comitting first and approving avb project economics bodes well for other financiers running the ruler over avb.
    5. big name institutions buying into avb. are they not confident of avb getting funded for production?

    just be patient. october is the earliest they said. it will come. most of the money is comitted already and if they have a 10m shortfal ( out of 28m) so what? they can use their cash reserves.
 
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