Easy to cut and past the failed Q4 aims as fresh aims for Q1 2105, which is naturally what we have all done, but AVB needs to give us an update.
AVB claimed to be aggressively pursuing Project Finance months ago. What’s the problem? Too aggressive? Not aggressive enough? Why aggressive pursuit would be necessary among banks AVB stated were ‘vying’ to provide finance seemed a contradiction to me, but that is what was announced. An offtake agreement was also expected by Q4, but again, no sign.
Since important milestones have not been reached in accordance with the company’s published plans and expectations, what does AVB management have to say now about the finance? If finance was ‘on track’, it would have been finalized in Q4, and so evidently, it isn’t on track. In particular, are there even any negotiations presently underway? Seems odd with the big Brazilian miner and the big Brazilian bank aboard that other Brazilian banks would not be happy to provide finance.
It doesn’t matter how economic the project if AVB cannot obtain the finance necessary to commence. Too ghastly to contemplate a big Brazilian miner playing funny buggers behind the scenes. Committing to major purchases seems to make some posters more relaxed about prospects but it doesn’t make the banks more willing to stump up the cash. If anything, they would see a client placing itself at their mercy.
I still hold and would like nothing more than to see this post swallowed up in an avalanche of good news from AVB and ridicule heaped on me for lack of ‘faith’, although Churches are probably the best place for ‘faith-based’ investment.
They have missed Q4 and I want to see the AVB update to their aims and schedules necessitated by the continuing inconvenience of the effluxion of time.
AVB Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
