What if I give you these scenarios. Let me know what you all thinks?
1. 40t/hr plant costs $5mil, plus construction and commissioning and maintenance comes to a total of $12mill
2. Internal PFS is ~$150k.
3. External PFS is ~$1mill
If they approached with 1 & 2 (which I think it would be the case now). Then we are short of money....CR or Lender come into play.
I will tell you all this (IMO) the reason as to why we don't have a PFS out is due to the fact that Management decided to save heaps of money (AVB haven't got much anyway) by bypassing this PFS and go straight to getting this plant and start production is a gamble due to the similarity in the area. If it works out well (which all our Experienced Management seen to think so) then SH's gonna be very happy. On the otherhand if it doesn't then a proper PFS option with be look at and more pain for SH due to committed costs already spent.
AVB Price at posting:
7.3¢ Sentiment: None Disclosure: Held
