Australia and solomon islands business expo, page-28

My thoughts...

I’ve drawn a few different conclusions from his presentation at the forum on Friday and the recent support levels. Firstly, the decision of the PL for Isabel is still under deliberation and some time off, rather than soon to be announced. Otherwise he wouldn't have been 'pitching' AVQs case for Isabel. Obviously, he wasn't primarily pitching Isabel's credentials at potential funding partners, as that has never been an issue. We get the PL and the funds will be there and on our terms. His presentation was likely directed at the PM and him alone.

Secondly, based on the topic of his presentation, I think we are for sure heading to SJ and very soon. From RM's comments at the EGM, he stated he'd be looking to turn towards SJ if we didn't have a clear timetable with respect to Isabel. So, if the above paragraph is correct then a switch to SJ now is to be expected.

Additionally, the $$ will dry up this quarter and negotiating for further capital would be extremely difficult without concrete plans. So if my thoughts on Isabel are correct the decision to focus on SJ is made for us. Anyone looking to inject money would need a clear link to a $$ return (SJ), rather than the probability of a return subject to an uncontrolled process and timetable (Isabel).
Thirdly, it also leads me to believe off-market finance is already locked for SJ, as he didn't use the presentation as an opportunity to drum up financial support or awareness for that option.

Lastly, I'd be surprised if the announcement regarding the SJ funding arrangement and production plan doesn’t come this week. Going in August is leaving it late. If correct, whether it's a good week ahead will depend on the terms on which the funding is based upon and the proposed time-frames. SJ sounds like a strong long-term asset, but we are in a tight spot financially. It will be interesting to see what terms he negotiates. For me it’s an opportunity for RM to justify his salary.

Or I could be way off - I've completely misread this stock before! Either way fingers crossed and good luck to all.

Jess