a sound risk management approach, page-6

Jaws

Great summation of what many shareholders and potential investors must be thinking about APG.
In your post you asked the question :
“ How does APG provide confidence to the market that that they do have sufficient funds to ensure they complete the plant on time, they do have sufficient funds for the completion to actually occur whilst at the same time they do have sufficient funds to manage the defence of the Kronos legal matter? “

I must admit, I was hoping that the APG Q3 report would answer this question of sufficient funds– but obviously I was grossly disappointed, as I suspect were many other shareholders.


Lets have a look at what we KNOw so far

5/4/13 APG Shareholder update - Kronos Termination of Project Agreement and Instigation of Legal proceedings against APG - came out after close of market on Friday 5/4/13.
Kronos is APG’s largest shareholder, only licence holder and the provider of funds to complete the NIRP. The removal of support by Kronos, and the start of legal proceedings could have obvious financial costs to APG and raise questions.
The only concession that APG management made in their update to answering the question of sufficient funds was this : “ Construction of the NIRP, which is being funded by APG continues.”

Obviously Foulthrow was concerned about the ongoing funding question. He rang APG management that very evening and had a discussion, some of which was of a financial nature.
Foulthrow summarised the financial parts on HC (post 9220516) as follows:
1) APG are on time and on budget with the plant.
2) They have sufficient cash to complete the plant as well as entertaining any "potential" legal action.”

10/4/13 APG Shareholder update – lots of pictures and detailed explanation of construction of NIRP – but NO financial dialogue , or mention of Kronos.

30/4/13 APG Q3 report – ditto - lots of pictures and detailed explanation of construction of NIRP – but NO financial dialogue , or mention of Kronos.

So here we are now.
In the 4 weeks since the Kronos announcement the APG shareprice has dropped from 3.0 cents to close at 1.7 today.
I personally feel the APG shareprice should be higher that 1.7c for a company that will have a hugely profitable ($7m pa profit) plant in cashflow by end of year.


So back to the back to question - How does APG provide confidence to the market that that they do have sufficient funds to ensure they complete the plant on time ????

SIMPLY SAYING SO - would be an excellent start !!!This is what other compananies in this position would be doing.
A simple financial statement should have appeared on the above 3 APG releases and any subsequent release.
It should explain that, the NIRP is on time and on budget and APG has sufficient cash to complete the plant as well as entertaining any potential legal action.

Managements lack of dialogue in this area is affecting shareholder/investor confidence and this is shown in the falling shareprice.
Part of executive managements role must be to build confidence in the company.
If my company is going to be profitable by end of year, and has the means to get there, I would like to be reminded of it every time I read a company release.
If you say something often enough people will come to believe it.
If you say nothing, people will be asking why not.

Wilcox