Some info. from a report released by my broker this morning.......some of this has been raised by the learned individuals on our AJM forum.......thought I would post in anyway.....it certainty adds to mine, others thoughts that there is little to worry about with the current manipulation occurring with our share price. I am still expecting a recovery...and soon.
AJM
Earlier this week our analysts spoke directly with the management of Altura Mining (ASX:AJM) to discuss concerns around the state of their balance sheet and the possibility of a dilutive capital raise.
Our concerns were based in the fact that Altura only has some $10m in cash reserves on its books, an imminent interest payment of some $15m (we now know is due in February) and operating costs of around $30m a quarter.
Two plus two equals four and those numbers added together suggested they were about to run out of cash.
Significantly AJM management added further detail to their PPE expense (production expenses) and said that it should significantly decrease from the aforementioned $30m a quarter. This is because in those quarters the company was building its facilities in preparation for the ramp up to full production, which is now complete.
The company also clarified that a payment worth US$11m from a new offtake partner GFL was received in this quarter, significantly improving the state of their balance sheet.
In conclusion AJM would NOT need to conduct a capital raise, which Macquarie posited in their recent research reports.
While it is high beta and therefore risky in the present market volatility this should significantly increase the attractiveness of AJM at current levels and provide some re-assurance to existing holders who have admittedly seen losses.
As a lithium producer with a proven resource, offtake partners (i.e. guaranteed customers) and now a consistent level of shipped product AJM remains a far better opportunity to gain exposure to a Lithium junior than many other companies which may still be in the exploration phase.
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Column 1 0 Better returns,The ASR Team
Some info. from a report released by my broker this...
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| Last trade - 15.39pm 03/05/2024 (20 minute delay) ? |
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