I have been chewing on what happened over the last few hours. Was it a case of insiders finding out that some financing of some sort - then got buying in big time expecting more? Now holding on, looking to get out when the time is right? Or was it just simply a case of a lot of day traders - again - not making sense?
From the announcement - there is the ability to raise 20M - but no guarantee. Will this be enough to secure the debt financing for the plant. Working Capital is fine - but the big debt financing of around 200M is what we want.
I hope management do not raide WC and then burn through all of this in the next 3 years and not raise the required 200M to build the plant. The WC should only be used to secure the debt financing - no more drilling, no salary increses and no extra wage people unless absolutely critical to the financing.
To date, management have burnt through a lot of WC and done nothing. It took them until March to cut back their salaries, many of their counterparts in other firms had long lost their jobs.
URL Price at posting:
27.0¢ Sentiment: Hold Disclosure: Held
