I think there may be a bit too much emotion going on here, with a couple of people almost salivating at the prospect of SO4 failing, and so their less-than-objective posts only serve to denigrate the reputations of those posters. It's sad.
Unfortunately, if things go awry, they will be the first here to promote themselves saying "I told you so", which clearly shows the whole episode for them was about ego rather than generosity-of-spirit and kindness to all the other mum and dad investors here. Unfortunately, the world is full of these people.
I think we need some common sense here now, and clear thinking.
I've spent the last few day doing research, and making broker contacts down on the Terrace in Perth.
My understanding now is that Taurus funds have not pulled out, but they have insisted on sticking to the agreed (formally assigned) precedents for the periodic release of capital. So some of the posters here seem to be correct, in that the delay in some of the approvals has caused the precedents to not be met in the agreed time frames. This seems to have created a short term problematic issue, though less than serious.
In effect, this means that SO4 management had been a bit remiss, but it's not life threatening. They need to raise additional capital to tied them over until the final approvals come through. But the problematic issue here is how long the approvals take, and if the raised capital will last that periodic time frame. It's an interesting situation !!!
The capital raise, as has been suggested here by a poster or two, is likely to be about 60m shares at 40 cents, for $24 million dollars, and it may take a couple of weeks to raise this, but it will be done.
My personal opinion is that when this is announced, the price may fall to 35c to 38c in the short term, but once all the approvals are in place, and the precedents (with the extra time frame) have been met, then Taurus will continue to release the agreed funds in stages next year, (though perhaps a little later next year than originally expected) and the project financing will be back on track.
This is my understanding.
Other investors can make their own understanding on whether this is going to be a good opportunity to buy the dip, or sell, or hold - it's very much an individual call.
What we don't need here, are ego based posters panicking good honest mum and dad people who invest in good faith, and we especially don't need it during a suspension, when quite honestly, they have no better information on the issue than anyone else, because it's not fair on good hearted and honest mum and dad investors who are doing the best for their families during the Corona Virus pandemic.
So my impression is that SO4 will raise enough capital to ride out the extra time to get all approvals in place, and then the Taurus funds will be released as scheduled from then on. It's a lesson for everyone though, including the SO4 executives.
Gw
SO4 Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
