Awoonga there does seem a perception everything is very slow...

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23/07/14

10:17

Post #: 13700574
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Originally posted by Awoonga ↑

Kalenn,

A delay in the start of a project delays revenue to the owner. Every project has a start and finish date. The owner factors in the finish date when negotiating supply contracts. It is not irrational, it is real. Every month without an operating mine means another month without $7 million of revenue to AVB.

Let's say for arguments sake, we got the bank finance approved in June last year. We should be by all accounts have an operating mine by now, be it with a Trial Mining Licence. Instead of earning $7 million per month and making a profit, we are currently making a loss.

Didn't we hear a couple of years ago that we would have Stage 1 operational mid 2014?
Ok I won't be too irrational and be too critical. There have been various reasons why we are where we are.

My point is with each passing month, the above argument becomes more and more valid.

Perhaps my frustration comes more from the lack of news on Stages 2 & 3. At least while we wait for the FML, we could be using the last CR as intended. That is infill drilling of Stage 2 and exploring Stage 3. I can't imagine that any of this is happening without an announcement so it is probably not happening.

One reason could be that we need to keep most of this money in reserve or to spend on Stage 1 until the bank deal is signed. Perhaps Appian made the FML a condition of taking up the CR.

Then there is the Ore Reserve. Is the Ore Reserve being held back from releasing and what is the reasoning?

I await the Q2 report with bated breath.

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Awoonga there does seem a perception everything is very slow whether deserved or not.I think the ML was originally expected end first quarter back in late 2013.
I guess a good test with your analogy in future would be how quick they can get this mine up.These days all construction is fast track so I will expect this to still meet their operating date end first quarter regardless of current delays.
Also I cannot understand why we have not heard of stage 3 drilling which should have started by now.Maybe ML is delayed but I can't see that means everything else will be as well.Just one rig and get it underway should be no issue funds wise at least.

AVB Price at posting: 10.7¢ Sentiment: Buy Disclosure: Held
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