Originally posted by Croc-file
Hi 42Trader great overview from a long term known holder....Wise words...IMO HC posters expectations were in line with the information provided at the time.It appears the Silk Road Funding had some hooks in it and management are now working hard to address this.I am hopeful that management are in talks with further off/takes as this only increases our chances and leverage.
The DFS should provide bankable figures but also mention current bench mark prices being achieved.Not doing so will raise unwanted scrutiny at time share holders are looking for trust building related announcements.GPX are quoting benchmark prices along with other known peers then we want a comparison not ten year lows.We ask for a fare go and tangible figures similar to peer expectations being reported.
Looking forward to some positive news as the white knights are being pushed back on...Managment have confidence they have this under control so hopefully news soon.Positively we may be in talks with further off take partners and more up front cash to support dept funding...I hope your on the money 42Trader
Croc
Agree Croc that Management set a high degree of expectation for a quick funding resolution. Without giving us any time like 3-6 months on it, which is fraught with danger in some ways, expectation were set in the minds of the individuals at large. This leads to many unhappy campers. I think outlining a timeline at least sets a referance for expectation. Be it Silk Road or other funding none of it comes quick particularly when multiple parties either want in or are needed. Then if a larger player wants to extract a better deal for themselves Management have to weigh up all the pros and cons and do what’s best for them.....I mean the shareholders......
What do management do if all three expressed offtakes want 100% of production no matter how big the plant is initially but also future expansions. Do you play them off against each other to lock out two and keep one? But which one? Do you give each one guaranteed 33% of initial and future? How long do you give for competing submissions. All conjecture of course but not beyond possibility.
What ever the delay real or perceived as per expectation, an update never goes astray when you just got rebuked by holders and they need something to settle the nerves. I agree that an updated DFS with benchmark prices would be well worth the read to compare project to project. We know WKT will come out looking very nice indeed under that comparison. Also not hard for any prospective funding bodies to drop a few numbers into the existing DFS and see the benefits. Having said that if any of the funding bodies are playing hard ball or have had a change in Risk profile for projects which is not unimaginable right now, then they may await an independently verified DFS as part of due diligence, as many of us know from their own career experience often if it’s not written down it doesn’t exist.
We know from previous long periods on no communication that Management are not the kind to put their feet up and wait for something to happen. We can be confident management are doing all they can to get everything required to kick off done.
(20min delay)