Originally posted by mboose
3. Appendix 5B – Estimated cash outflows for next quarter The Company refers to Section 9 of the Appendix 5B for the quarter ended 31 December 2018. The Company advises that a large portion of the $1.0 million in development costs and $1.45 million in production costs partly relating to the first shipment of nickel ore from the San Jorge mine are dependent on there being available funding from the Off-take finance facility that the Company is currently negotiating and revenue from sales of nickel ore in the March 2019 quarter. The precise cash outlays will vary to reflect the funding the company can secure. The Company will release a further announcement with an update in relation to the Kolosori tenement shortly which ends the Suspension of trade of the Company’s securities. * part of the disclosure in note 18 (b) to the Annual Consolidated Financial Statements dated 30 September 2018
How ambiguous is the content of the above.
AVQ's BoD say the majority of funds that the Company is informing the market, potential investors and its shareholders that it intends to spend in 1st Q 2019 A$1M on Development and A$1.45M in Production costs respectively, and here comes the ambiguity, is dependent on AVQ receiving adequate funding in advance from a yet to be secured Off -take finance agreement and yet to be secured revenue from non existent Ni ore sales. Both streams of revenue would have to be paid too and received in advance by AVQ otherwise the predicted (precise) cash outlays $figures detailed in development and productions works costings will be varied.
This means no $funds no work. No work, then what next?
What a precarious way to try to run any business let alone a public entity. If AVQ was not a public entity then perhaps creditors would have shut this down before now.
And some of the public and shareholders (being one and the same) wonder why they are in conflict over the banking royal commission and its long overdue findings.
And people thought SBM was dead when the share price plummeted to 7c with every problem under the sun. Now look at the share price, $5.00.
In times of doom and gloom that is the time to buy, i.e. in most circumstances. I have made my tidy fortune that way and am a TOP 20 shareholder in another company besides Axiom and expect to do well over the coming years.
