Typical ann from these guys, it only makes any sense at all for us retail SHs when read as an addition to news flow over the last few years. I expect that what is written between the lines will be meaningful to those who move in higher strata.
AMG reaffirms that their priority is the Cloncurry Golden Mile & Mt Freda gold project which they will bring to production this year - recall that, over the years, it was always the main play to bring in a cash flow from Curry to action the exploration in SA.
Now they want a JV to do talkies with another company about a gold plant to use at Curry. This ann tells us little about the new partner Activex Ltd AIV, but AIV's Q is informative.
IMO they seem to be land bankers, and probably shrewd ones at that. Under Financial (in AIV's Q report), they say --
"As at 31 March 2020, the Company had approximately $176,000 in cash and has access to an undrawn facility of $2,600,000, pursuant to the $5 million loan facility agreement entered into with Star Diamond.
On 24 January 2020, the Company announced the extension its on-market share buyback program for a further 12 months from 10 February 2020."So they are going into debt to buy back their own shares - that can be problematic in times of crisis IMO, as seen with Boeing and Qantas et al who depleted their liquidity with buybacks and are now holding out their hands for a Govt bailout. However to attract a loan from Star Diamond (the Canadian diamond miner who does JVs with RIO) is a strong point.
AIV has some interesting tenements SW of Cloncurry, which are under explored I expect, and might be attractive to AMG on a 75% JV basis. Perhaps also AIV sees a 25% stake in those tenements as good given that the AMG team are the 'Masters of Curry'.
Their board is ethnic Chinese biased, with language and experience skills which will assist deal making, the chairman is described as '
creator and facilitator of two-way cross-border investments and trade.' -- so are those the skills AMG is looking for to aquire a new Gold Plant, having sold the one they had to PNN last week ?? !!
http://activex.com.au/company/team/So far the talk about a 75/25% deal is all mumbo jumbo, with no reference to how Capex or Opex, or Profits will be shared.
I too have left the room, having abandoned my plans to double down, and taking a sad loss but also my remaining capital to cash.
Sincere GL to all holders.
