AHQ (ASX) Ann: Response to ASX Aware Query

Originally posted by Sky Cuddles: ↑

Swagman, I'm reading daily postings on hc but won't get too involved with what is said. It is unclear why investors have made the decision to rid AHQ of its value. Covid has perhaps made them more irrational.

State of play
Covid was an interesting investor quandary: when the market went down, investors had to make something of it. My first thought was to recognise that big companies would lose out most, as their cost structures would make profit difficult on smaller sales. There were other observations like working from home and the need to buy DIY and electronic items from places like JB Hifi or dinner buying from Uber eats or Marley Spoon. Don't forget about lithium or BNPL Stocks. I do note how fallen many of these have become. Anyway I think the investor changed it's stripes and this now applies to AHQ. So when the BOD at each recent meeting say all is OK (27th July ASX Query) I ask why does all hell break loose?

In this regard both my past SWM and AHQ comments stand. Where are these events that will bring these companies undone?

And I have looked at many of the issues raised and sought to find how they will evolve in the near future against AHQ. Most of the time just one thought was needed to vanquish the issue: how did any company survive when coal was $50/t? And hence, what is the trouble when the price is $200/t. When i looked at it like that, AHQ just needs time to grow.

Lastly, I know some issues date back. Decisions like having 4 mines instead of one mine properly set and fully resourced have caused some issues. The funding of equipment and maintenance issues also overlapped to spoil performance as had covid. Doesn't matter they are growing and new CEO has firmly taken the reins.

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What part can't you read, They cannot exit the offtake agreement which at current prices is a reduction of 40,000 x 100 dollars x 12 = 48 million dollars a year.

This offtake agreement is a scam and the lack of transparency regarding it is what worries me, Loans and Capital rainings are one thing an offtake agreement that sells from under our noses all the upside to the company,

yes they can sell whatever they have above 40000 pm on the spot but they wont even get to 40,000 in the near future