Ann: Response to ASX Appendix 4C Query, page-17

Nomadic Investor is quite right. The company has fudged the answer to the first question.

The ASX asked "1. Does AJX expect that it will continue to have negative operating cash flows for the time being and, if not, why not?"

Jake0002 suggested that the question was ambiguous and, taken in isolation he has a point. But the question should not be taken in isolation because before asking it the ASX said

"ASX notes that AJX has reported:

• negative net operating cash flows for the quarter of $1,095,000;
• cash at the end of the quarter of $3,126,000; and
• estimated cash outflows for the next quarter of $2,876,000.

From which it is quite clear that the ASX is asking "What source of income will AJX have in 3 months time which will enable it to pay its operating expenses without the need for a further capraise?"

That question was dodged.

Last year shareholders were told that AJX was expected to be cashflow positive by the end of the year. That did not happen. Instead we had a capraise at 6c per share in what seems to have been an act of desperation.

The question remains "When will the company be cashflow positive?"