Hi Anti,
regarding the risk, I am not averse to moving the highway (I mean, it's going to be a profitable investment), I just dislike a company the size of ALK taking on up to $120m in debt (Nic has mentioned they plan to upsize the debt facility again, my guess is early next year), when.... I just don't see there being a good justification, when a slight delay, perhaps 6 months, would ensure the company could fund it without further debt.
I watched Nic speak from the Noosa conference (Plus other videos) -
COMPANY REPLAYSThe last 8 minutes or so was particularly interesting, where Nic stated plainly that... the board is open to all options, including mergers if it made sense (he spoke about some producers having good cash piles etc) since ALK is in a heavy spend period, which could be expedited if there was more funding available now etc. I genuinly view ALK as a target because of how it has not managed the Roswell ramp up timing.... if the permitting had come in earlier, I don't think ALK would be at this share price, closer to $0.60. I could easily see the likes of GOR move on ALK, use their to fund the highway and higher production, plus finally have access to really prospective tenements, versus their total failure to find anything in 6 years. This would also give GOR a copper option with Boda/Kai. GOR did a masterful deal with Goldfields when they bought into Gruyere, they could easily do it again with Boda/Kai. A lot of gold stocks, especially the majors have been trying to integrate more copper assets into their portfolios.
While I don't have any confidence in GORs operations skills, ALK already have that in spades (so... if I can be blunt, just remove ALKs board). GOR are good at deals..... Just seems like it could be a logical tie up. There could be many other potential tie ups.
I think the board must realize that in the short term, the market only cares about Tommi, especially operationally, so.... make that the focus of presentations, make it clearer how the current plant upgrades are going to make a noticeable difference to mining rates, recoveries etc. Undertake targeted infil/extensional drilling at Caloma/Wyoming and show they have more to give. The market wants to see that ALK recent guidance miss, is... a one off.
That is my wishlist....
(20min delay)