I only got around to watching the AGM video today... posting the link below (sorry if someone has
already done so).
I don't agree that the presentation given by management is satisfactory. The questions were answered with minimal information.
My ears pricked up late in the Q&A when Rowena stated the additional feed stock would be used to "run the furnaces at higher rates and that's what we are seeking to purchase in the first half of next year" (video time stamp 1:05). This clearly infers they do not have orders... since it is in reference to the commissioning phase of the plant. It also puts a bit of a timeline on how things are going. Personally, I find it disheartening that management did not make this plain in the AGM when they had ample opportunity to do so... and instead one has to find out in this indirect way. Obviously ASM does not have a revenue stream to support the ramp up and needed the CR... not pleasant news but they should have been transparent about it.
IG emphasized the Consortium "were good people" (video timestamp :59).... no doubt they are, but that is completely irrelevant. What is required from management, in their presentation to share holders, is to give a break down of the "nuts and bolts" of why the Consortium could not deliver an alternative strategic investor. What we are given instead is the framework agreement is no longer exclusive... again, minimal information. People were given very positive guidance on timelines and specified investments which we should have some confidence would materialize. It is incumbent upon management to explain why this did not happen. They shirked that responsibility. Not good enough.
The explanation that ASM is engaged in an industry wide effort to create an alternative supply chain with other businesses also commissioning plants is fair enough... as far as it goes. But what share holders need to be told is what is ASM's business strategy in this environment. How does ASM plan to progress given these are the difficulties. On this subject .... crickets.
ASM Price at posting:
$1.50 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)