I have only a little more stock left in AKA and may hold that as would need some when/if there is a rights issue and if the company goes back to deciding on a smaller plant again.
As for the 700tpa tonker toy , it was going to generate around $20M in cash flow per annum for around a $10M in CAPEX (from memory) to me I was very happy with that payback -why be greedy
If there was a problem with a component as is possible as there was no preceeding plant of this design for Kaolin then it is not a big deal retrofitting a pilot plant from an engineering perspective and also probably not an onerous financial cost compared with a plant over 4 times the size.
The combination of increasing cash in treasury and an increased repository of knowledge occurring from a pilot plant that is put in place over a year ahead of a larger plant to me outweighs going for a larger plants production that to me could well mean the company has to go back to entice share holders for shares at a lower share price than the market price for funding .
Also it would be far easier getting an offtake agreement with a smaller tonnage being sold and with a higher price for that product sale.
Be interesting to see what happens here however it does not currently fit the business model I am interested in.
AKA Price at posting:
7.8¢ Sentiment: None Disclosure: Held
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