IG is selling more Alkane shares, most likely because me needs the cash, only sold $1m worth, but a few weeks ago he told the full room at the AGM he has no intention of selling any shares in Alkane, then two weeks later sells a million dollars worth ……..
Why is this relevant to ASM? Well the most obvious reason he sold more Alkane shares was he unexpectedly had to contribute $10m to the cap raise ….. IG has very little cash at hand……
If i had to place a bet, I would bet IG sells his shares of Alkane for $150m - $200m and pumps it into ASM, most likely to purchase feedstock……
We have $26m in total feedstock and $65m in cash and available loans, this is not a huge amount of money to buy feedstock with
I really feel ASM we’re not intending to buy feedstock themselves but as they cannot get a deal over the line where someone pays for /provide the feedstock they are now in a position where they have to find a large amount of money to purchase feedstock, then, go to the table and negotiate metal sales!
If IG invests $150m into ASM for the feedstock and the KMP runs at 5,200t with metal sales to match, the SP doesn’t need to move a massive amount for him to make $500m? $1bn?
Let’s see how January plays out because it looks like IG is still offloading his Alkane shares on the market…..
ASM Price at posting:
$1.40 Sentiment: Buy Disclosure: Held
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