Hi everyone!
I just would like to add a few comment and what was important takes for me from the two ann from today.
The first and foremost is the following,right at the start at the Cashflow activites report
"Financial year 2020 budget adopted which strikes a balance between maintaining Ardea's strong financial position, whilst advancing the company strategic mix of nickel development, and Quality gold,and base metal exploration projects"
Adding to Red's comment of the company having at least about ~5 quarter cash if we run on similar cashburns as we did recently, and put together the company quote what i see here is not less but the comfirmation of what i wrote 1-2 month ago which is most probably getting a JV deal isnt a 2019 story, but rather a 2020 story,(and even there probably a H2 2020 onward possibility).
The nickel market need to reach sustainably 8-9USD/lb nickel prices for a period of a month or two consistently not just a price spike, that would give those other big companies the confidence to dont burn themselves later of approving(at sub optimal metal prices) and commiting to spend heavily into something which might look back bad on them if the market turns down and the project doesnt get executed at the end, or the project turns out not as good as the current prospects showing today.
As a company executive board member the most important is to save face and dont make potentially fatal(loosing their position)mistakes is the key.
The company see the very important need of cash preserving troughout the 2020 Financial year,which is indicate for me that the chances are small in the management eyes that we going to be able to reach a JV agreement very soon(like this year).
I just write down this for my fellow partners not that they start to get very high expertation suddenly and expecting that our JV signature is just around a corner, our Management forward commenting with their communication that their expertation to get our JV deal done is more likely to be some distance away which might will take all our cash reserves, which means the manangement getting ready to the possibilities that might in the next 12 month we wont get our JV signed.
Which i like to read BTW in management communication much more than try to promissing JV signatures,and partner agreements done every few month than management loose full credibility.
I want to avoid pessimism and(criing
) hitting our forum stage 3-5 month from now,because 1/3 of the holders thought the winter is over and the big cash is can arrive any day. I think it will take longer, and seeing comments of the upcoming 2020 fical year super saver mode budgeting it only confirms my thesis in my eyes.
The second Screen shoot also shows how much we try slowing in regard of cash burning, our resource upgrade now communicated, as H2 2019 not as Q3 anymore, which try to wisper into my ears to pushing out their earlier set Q3 completion date into Q4, which is all good for me, but it all plays on my thesis from where i sit.
Scandium report day havent been mentioned in the report, BTW which earlier also supposed to be Q3 delivered after the resource upgrade. The possibility also could be that The management on more important milestone reporting will try to wait and shift for later days which helps also cash saving and also they can continue to give some reports regarding our GNCP project, and by that also calm impatient holders who expect news every month?!
Thats about the Quarterly.
About the Option Set out i am kind of surprised that no one commented on it.
The addition to the B and C performance options is useless where i sit today and the chances that it will be given is less than 20% for the Class B and less 50% for class C from where we stand today.
And the real Purpose of this Ann is the D and E options.
Which is 1.4 million Additional shares which will be given without much of an achievement. In my opinion i would be trully surprised if our management team wont be staying with us as they get paid regular Junior miner executive salaries and the payments granted for a good year and probably we could raise for another year money easely in 2020 year end, and the criteria Share price performance wise(60c-77c) going until 2021-2022 really hard to imagine that they wont get filled.
So basically 1.4 million free shares which if we hit the JV(and we will the only question is in which year) can worth easely anywhere between ~4-10 million AUD. The good news is i see more than 50% chance that the B and C performance Option wont get filled at all which saves us ~3.5% dilution.
(20min delay)