"There is no cr coming and
debt is going down not up"
That is incorrect, net debt increased the other week by a additional 7 m, refer to announcement.
Maybe with two different first ranking secured creditors they didn't have a choice,,,,,as I stated on one reply, did you know they actually breached a material covenant of the first 20M in DEC? This is detailed deep in the accounts...….Ill say it again, I do not believe they did it to save money, because as I've shown they didn't save anything at all
info from accounts
Current interest-bearing liabilities of A$19.15 million relate largely to drawings by Tawana during the year ended 31 December 2018 under a funding package from a consortium of lenders led by Tribeca Investment Partners Pty Ltd. As at 31 December the A$20 million tranche was classified as current due to the Company falling outside of a threshold on a production related covenant by 3% as at 31 December 2018, which event was subsequently waived by the lenders. The classification of this loan as current has resulted in reported negative working capital as of 31 December 2018.
file:///C:/Users/Rojan/AppData/Local/Microsoft/Windows/INetCache/IE/14Q0AE03/AMAL%20Financial%20Results%20Announcement%20-%202Q%20FY2019.pdf
As for the operating costs (550 usd) , they are merely medium range forecasts, and should improve/ lower average costs following benefits forecast from DMS TA circuit due in SEPT this year.
Operating costs last DEc QTR were
Production Cash Costs for the Quarter were approximately A$1,152 (US$824) per tonne of lithium concentrate produced. That's after TA credits according to the note.
you are suggesting that costs have dropped from an average of824 usd in December QTr to 585 on first JAN? , I think that unrealistic
I. Energy, Fuel costs have soared since JAn 1 st for example and Im sure the contractors wont absorb the price increase imos.
from the accounts, going concern qualification from the directors ,this confirms your idea that there has been improvements in production and reduction in costs to date in this QTR, however, even the directors recognise that there is still huge cash outflows expected in the next 12 months.
During the period, Alliance has worked to bring the Bald Hill Project (“the Project”
into production, with the first spodumene (lithium) concentrate production announced on 14 March 2018 and commercial production declared in July 2018
. Although the Company has seen an increase in production rates and a decrease in production costs, the Company will be exposed to a high level of cash outflows over the next 12 months due to continued pre‐strip activities, expansion of activities including a DMS fines circuit, sustaining capital, exploration activities and stamp duty associated with the Tawana Resources NL merger. Alliance will also be exposed to the normal risks and uncertainties inherent to mining operations such as: the Bald Hill Project failing to perform as expected; higher than expected operating costs; lower than expected customer revenues; key additional infrastructure not coming on stream when required or within budget; and potential equipment breakdown, failures, and operational errors.
ITs also worth noting, despite all of this record production and sales this QTR, despite many a forecast here of cash at bonanza at end of QTR, Cash at bank on the 14 th MARCH was LOWER than the end of the year when all these production and cost improvements and shipments have happened...…
From the accounts
The Group had cash and cash equivalents at 31 December 2018 and 14 March 2019 of $13,054,000 and $11,620,000 respectively.
now Im not suggesting a 001 cent target on it, but I definitely would not be buying the stock based on these consolidated accounts
