I revisited the annual report to check a few things and agree the drawdown you point to is new and I am pondering wether this finance delay (the first time anywhere AVB have used the words finance delay in any report) has more to do with AVB than the Bank and its original offered deal. Apart from odd out of context statements and even another pointer to the wet period again!. I was struck by the emphasis on significant FX and Capex saving expected following this delay. The situation with the bank obviously revolves around that syndicated $28m, but do they even need that amount of cash anymore?
How significant is the significant FX gains on even the copper forecast prices? it could be sizable and just how big could the Capex savings be, they say again significant? When you are approaching the bank for forward funds as AVB were way back, did they pump up what they needed? do they now see that the whole number was higher than an actually minimum to press the go button? How significant we can ask, but the wording has me thinking that perhaps they no longer need the whole syndicated $28m sum, or did they ever? Are or have they been in negotiations ongoing with BV (and others) about an alternative effective cash from within so to speak, because THEY were not happy with the syndicated terms and number. I do wonder exactly how much of that $28m is needed as a min to get AN turning some cash? and who could be in a position to assist with a gain to both sides. Gee I gotta be thinking "off take" agreement, pump up royalties with BR, see what Appian would like of that action, its not as if other options don't come to mind, anyway they would be very complicated, needed just the sort of time we have been involved in, and little need to tell the market if the lead bank deal is still technically on the cards, especially if you make sure it stays on the table, questions I am asking anyway.
Could be we have another funding model in the mix? cannot be ruled out I say and it is why I have maitained a bullish view on funding in general, someone will stump it up, too attractive IMO. I am sure we have watchers here, am I close boys?
As always DYOR!!!