So having been perusing over the quarterly cashflow statements - I note some interesting takeaways that may start to complete the picture in regards recent snapping up of shares back in the last quarter of 2019.
On the surface you can easily see why ANW is currently trading with a market capitalization currently locked in at circa $3 million .
To justify this you only have to apply a basic formula which ties the common theme / threads ......and could look as a simple as this:-
Market Cap of $3 million = Borrowings of $ 2,902,010 ( represented by $2,846,281 outstanding convertible note (secured) , related party loan (unsecured) of $55,729 ( represented by DGR $50,500 (2019 ), Hopgood Ganim $2,700 ( 2018 ) & Hopgood Ganim $5,183 ( 2019 ) + environmentalbonding totalling approx. $630,000 = Convertible Security Funding Agreement (CFSA) balance outstanding on the facility of $2.5 million + plus further ' unsecured ' loan from DGR of $500,000 = $3 million
The only thing I have a problem with is perhaps the special preference seemingly given to the initial related party loans......
And why would this be the case ? And I reckon you can prove this out by inspecting the ' Operating Activities ' in the quarterly cashflow statement whereby there is ONLY really one significant transaction coming in attached to the heading of payments for ' production ' . And that is for the rounded payment figure of $56,000.
So I guess my first question from there would be that does this ' payment 'of $56 K represent the ' unsecured ' Related Party loan shown in the Half Yearly Accounts at 31st December 2019 , and if so , my second question is why haven't they paid any of their ' Trade and other payables ' amounts of $1,882,574which was included in their current liabilities in these same accounts as at December 31st 2019.
So I'm left wondering why those balances are now at least 90 days old if not more at the present moment. And even worse is that they only expect at best by their own estimates in the quarterly cashflow statement that only a further $120,000 is expected to be paid in the whole of the entire second quarter.
Geez , I wish I had terms like that with my trade creditors......
Plus according to their half year accounts they had ZERO production costs in the half with around one third of the expenses being allocated to ' Other Grandville operating costs ' of $558,114 ( prior year half year $828,025 ). So if combined on a relative full year basis that would be $1,386,139. Depreciation ( non cash ) was equal to another approximate third of $501,151 , and the other approximate third being ' Admin and consulting ' expense of $595,918.
Comparing on a separate level of cumulative ' cash outflows ' again on a relative combined TWO half years together - what you get is a total of $1,845,918 being paid out to suppliers and employees verses the $1,882,574 outstanding to ' Suppliers ' with a striking difference of only $36,656. Take the employee costs out and you more ore less come back to the $1,386,139 million of ' Other Grandville operating costs ' for the last TWO years.
I also don't think it is a coincidence that this is roughly equivalent to the initital cot of the Grandville mine in 2016 nor is it all that different to the original $1.5 million touted for the proposed sale of Grandville in May ( inclusive of estimated $500,000 listing costs )
Bottom line folk's is that it would seem a very set of unusual circumstances to allow a situation whereby on the surface it looks as though ' Supplier's ' would seemingly not have been paid for what looks to me to be a fair swathe of time - even up to perhaps a year.
So in my mind , this has been going on for quite some time as well as the fact they have NOT been producing anything this entire 9 months of this year. Put ALL this together with the seemingly rather abrupt and quick entrance of certain substantial holders onto the ANW register , and it sure starts to look as though someone or some entity or entities are now posturing so as NOT to loose their money which perhaps has already been at play right under their Shareholders very eyes and noses.
And one has to ask themselves only one single question - and that is Why don't they just simply pay this ' Current Liabilities ' balance to Trade and other payables directly out of their $2.5 million from their convertible security funding agreement with provided by the Australian Special Opportunity Fund.
And the answer in my opinion is that they Don't want to ......because they obviously don't need to ..... because they are being allowed to ...... by someone .....
