i appreciate your opinion. the 'massive' announcement hasn't...

i appreciate your opinion. the 'massive' announcement hasn't moved the price. why should it? it's not a binding agreement w/ the signing of a contract between two parties. not yet. in addition, the amount of the pre payment isn't enough to cover the required investment amount to produce a saleable product. we don't even want to start w/ the missing stage two permits (which, according to mgmt, will probably be issued together with the export permit at the end of this year) and the incredibly crappy sector conditions.

but
the low atm withdrawals mean one thing to me: they don't want to use it, but have to in order to gain time. i don't know if it was here or on twitter. i remember a conversation in which i mentioned that it looks like they are using the atm to pay outstanding bills. contrary to my fears, we didn't see in the last quarterly report that they were shifting the ratio of a&c costs/investments in the project in favor of a&c. they have remained at a 4% ratio. if this will confirmed in the next quarterly report, they have really invested over 90% of the atm funds in the project and actually only paid for the further development of hmw.

my opinion:
they will not allow themselves to be involved in a debacle similar to that of glencore again. they will have known beforehand that the money from the pre payment wouldn't be enough and will secure further support. i'm thinking about debt (see sigma), government support or another pre payment package. jp probably didn't talk about stage 1.5 for nothing.

no financial advice.