ALB 0.00% 5.7¢ albion resources limited

q report, page-12

  1. 215 Posts.
    & why exactly would 'the current shareholders show their support' for such a pointless course of action - there is no way the Board have earned our support as is, without further dilution!

    Since return from 18 months suspension & in a bull market the stock has gone absolutely nowhere, it is crazily undervalued & the reason has to be the Notes.

    Jinchuan can get back their Notes loan cash from profits on the LOM, they have no need (that I know of) for the relatively tiny amount involved. OTOH the threat of dilution is killing the share, & the market is unlikely to value it properly until the Notes threat is removed. Why would Albidon wish to repay the loan at a value of only 6c/share when we are worth many multiples of this?

    Forget the acquisitions until the SP is at the proper level & only THEN issue further Company paper if the right target is located, using our cash to pay interest & repay capital on the loans for now. To part-finance the loans from the Notes at 6c/share & use current cash to purchase assets is absolutely the WRONG way to go, the market would never go for it.

    OTOH bin the Notes & you will see your 3-5 bagger a damn sight quicker than 12 months.
 
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