absolutely spot on.im heavily invested in this company. Its just...

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mkokoteni

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18/08/21

13:32

Post #: 55384778
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Originally posted by Gwaihir: ↑

This looks like a very carefully written announcement, and there may be some things between-the-lines that need to be interpreted here, or is it just my interpretation of the way things are worded?

Have they used the announcement of an increase to 130 ktpa to (in effect) try and disguise a cost blow-out, without wanting to overtly announce another cost blow-out, because they know how the market and shareholders would react to such an announcement? Is that what this is really all about?

They also obviously needed to keep the German engineers on for a much longer extended period, so I'm assuming we don't have, or can't get, appropriately experienced Australian engineers to take over the reins. How much is this retaining of engineering costing?

Are they also using the wording they have, to effectively soften everyone up for an imminent capital raising, without wanting to overtly announce that a capital raising will be needed in the near future? Is that what this is (also) really about?

Is much of the announcement a softening up process?

It looks like they simply don't want to come out and explicitly say the bleedin' obvious, because they are fearful of the market reaction.

What is the obvious?

1. There is a small increase in production levels, but that won't be achieved for some years to come, and (may) require additional regulatory permissions.

2. The cost will be an extra $45m (at the moment), part of this will come from a capital raising.

3. There are delays in ramping up to October, but probably later is how I interpret it.

4. Staff costs are rising.

5. German engineering is retained and these costs are rising.

Are these simply teething problems, because this is a new industry in Australia?

I hope so, but it's quite obvious the project is going to cost over double that was estimated initially, all those years ago.

Still, you need to give them credit for plowing forward and continuing on.

The one bright news at the moment is the rising SOP price and demand globally.

I've reduced this to a hold now, until we hear of the capital raising, which I'm assuming they will try and get away at 17c or 18c.

Gw

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absolutely spot on.

im heavily invested in this company. Its just the transparency of these companies that get me. Disallowed salesman. They get away with all these bullshit

its so obvious to see through what they are trying to

if the company was genuine, they would get into production first, make sure everything is in order and think about the additinall capacity. you dont need corporate strategist to tell you that. anyone with common sense can think about this

The management is completely useless and full of bullshit

KLL Price at posting: 20.0¢ Sentiment: Sell Disclosure: Held
9 Upvote

0 Great analysis

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