Report from SH forum by uniquepro as he posted it elsewhere. Hope he does not mind it being reposted here. In any case many thanks to unique for the excellent report!
Hi Guys and ladies (as there was one in attendance today).
I got a return e-mail off Brad yesterday welcoming me along to the forum
I turned up a little late and the meeting had already started, Brad was there with a member of the board and around a dozen investors..
The mood was a little tense as the questions started to be asked....
Q. why the lack of updates from both drills
A.They have had problems with operators and sacked one team(basically because they were pissing them around for too long)
Results were given yesterday which had a reaction of huge volume 104m and they seemed quite happy with them..
Drill 2 results are in and are being qc"d and will be out when they receive the data soon..
Q.Why the lack of exposure to the market.
A.They have taken this on board and will be looking to ramp up to the public shortly
Q.why was the cash burn so high
A.Brad explained whilst they were "looking"at where to drill they could keep spend to a minimum, but he explained rather well i thought how expensive it is to drill to prove the resource, to unlock the cash from the ground you first have to prove its there, proving its there with drilling expenses and reports and testing comes at big costs this is why the cash burn went from low to high.
Q.whats happening with the bulk sampling to Yantai
A.They are looking over the testing and will be reported on shortly
Q.How secure is the jv with Yantai
A.We are ticking off the term sheet and its going well.
Brad then answered a few questions on the site its self and showed some slides..
The deep depth didnt seem to be much of a concern because it is at a 60* drop so not a vertical drop which means it isnt a a straight dig down of 100m+
You can see the white spodu from surface so they know where to drill, the terrain continues to be some what problematic more so getting the drilling equip there as opposed to drilling..
I got the feeling investors wanted more, they wanted to know about the money, they wanted to know when where it was coming from....
Q.where has the money gone
A.as in an answer above Brad answered its in the drilling and reporting costs
If we dont drill we dont expand the quantum and we lose momentum and we lose sp in the market..
Q.what are we doing now
A.drilling has stopped and all reporting is being done and will be announced to market over the next few weeks
They cannot afford to drill and spend money they havent got on guessing where the sweet spots are, so waiting for reports, then the need for a CR, when this will be done they couldn't say, but they are going to ramp up to market and try to raise the sp with the news flow they will be generating and look at all options on the table.....
Unfortunately, there seems not to many people stepping forward wanting to throw money at them.
Brads counterpart had a few lines to say about the bad exposure on sites like Hotcopper and alike and when instos read the negativity they just dont want to come close to adv........I thought this was a cop out and throwing the blame elsewhere as to why no instos want in..a weak answer
They have to raise money, that there is no doubt, when asked where are you going to get it from at the moment i dont think they know, i asked at what price would you be hoping for for the raising? they said 2c
I asked a few hard questions today that i think needed to be answered...
Q.if we stopped right now, could or would we move forward with Yantai and build the plant and start mining
A.NO.from Brad
Q.Can you jv with others and forward sell to raise cash to keep developing
A.you can enter into a commercial contract but at what price and effect(effectively being held to ransom)
Q.can Yantai buy more upfront
A.they could but again giving away to much
So in the next few weeks expect a bit of a push on what they have and they seem to have listened to what the market needs if they are to get things pumping....
I asked the question
Q.what about Pickles.When are you going to drill it, if you have no money and drilling has stopped at seymour how can you drill for gold.
A.we cant drill until we have the funds in place.
Brad explained how he got to buy Pickles, he said it came to his attention and asked if he knew of any company that would be interested, he had a look at it and said he got excited of the potential of there being 500000 oz in ground from old data and got it cheap, he just had to get it as it made great sense and also gave diversification
Everyone knows my view on GOLD......That view hasnt changed and i have always thought it was insurance and that was kinda confirmed today(that was my take anyway)
So where is ADV?????
Ok Quantum is the issue,,,,TONNAGE is king(grade is cool) we just have not got enough...
A boutique mine with 1mt 1/2 measured and 1/2 infrared will not start...
Brads words QUANTUM is king, this is why they will need to raise more money, more money=more drills=more tonnage=more bankable assets..
Catch 22, they will be going to market(imho)soon asking for cash, they know if they leave it to long the price will just be on its a and will be very hard, so momentum will be gaining shortly, they know out of the 104m traded yesterday there would of been a lot of exciting and they know if they dont do a good spin soon then the CR becomes very difficult.
My personal take on today..
A few worried/concerned investors that know they have good grade lithium, but and a big but can they find enough and enough in time before they have to move on....
Gold will be drilled, at what point they dont know until the raising is done, but i can almost g/tee they will go there after the raising to hit the old data sweet spots to then go again to market for cash....Brads partner today said they wanted to go there for that pacific reason......
I feel the guys in charge are good guys, knowledgeable in their own fields and genuinely want this to succeed, will the cash burn be to much?will the tonnage be found in time? Thats the gamble, good rewards if they can, and an insurance of a gold play if they dont....We know the answer if they dont
One things for sure, there are testing times ahead, no matter what comes from the labs and from yantais reports ADV will need big money short term to get more tonnage, they need more tonnage or it is dead in the water....
Q.Would i buy right now..........
A.NO
All stocks at some point become of value, will ADV become of value is the question....
Seymour isnt the easiest to drill....0.4mt in 12 months, how much more money is needed to make this viable....
There will be talk of 3-5mt potential, will this be enough to get the sp where it needs to be to go for broke on the drilling?????
20mt was talked about, but thats just it, talk, it cannot be anned or quoted directly and i think the market has cottoned on as to what is sell-able info as opposed to "talk"
GOOD LUCK everyone who has invested and i have tried to wright this as with no opinion so both sides can take what they will and make their own judgement...
Uniquepro
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