the interest is there. there is no doubt. however, the question is at what price. looking at the SP and how much CR is needed plus how much debt is needed is what makes ASM hard place to invest for small investors. If ASM is not able to get Gov help (and a big one at that) then massive dilution is coming.
Who will lend $2bn - $2.5bn to someone with almost no assets except for the ore deposit. And that deposit will not be worth much if the project fails because it can't be mined at profit. What other assets can ASM offer as collateral that can mitigate $2bn risk? lol And yes, I saw DFS but I've seen many DFSs saying one thing but reality to show something else.
Managment should have done CR when the SP was defying gravity and they should have raised around $1bn or as much as they could. They would have been in very different situation now. Even their SP would have been protected due to the massive cash on hand position. ASM would have been negotiating from position of strength. Now they are hat-in-hands crew aka begging for change. I really don't see it any different.
The ABC article summed it nice - their own auditors say ASM needs to raise capital really soon. Unless I misread the article.
Anyone found out why previous CEO left? I start to suspect it could have been due to disagreements over CR. Perhaps he was the one against CR or the other way around or - he saw an opportunity to raise cheap money with SP at ~$12 and the BoDs turned him down.
It's beyond me how they could have missed the chance to do CR when SP was in the clouds. Is it possible the management could not add 1+1 and did not see they will run out of money soon. Did they think money grow on trees around Dubbo so they will always have around $2bn pop up from somewhere to develop the mine.
so yes there will be interests but no one will hand free money. they all want to get a bargain and those who negotiate from position of strength are the ones who get the better deal. Is ASM negotiating from position of strength?
So the CEO, the Chairman, the CFO and one or two Directors with finance background have lot to answer. Some Directors who are on the board from technical point of view (geology, metallurgy etc) should be left out of this responsibility as their will own the technical aspects.
again - all my own views. others see this differently and that view could be the right one.
ASM Price at posting:
$1.36 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)