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clock Created with Sketch. 03/02/19
15:54
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Originally posted by Dr_Manhattan:
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I was at the Melbourne meeting and JB didn't flat out say we wouldn't need more money (at least in Melbourne). When asked directly about the possibility of a raise/loan, he said 'He didn't think we would need it' but made a disclaimer to never say never, so it wouldn't haunt him later. So here we are and it seems AJM needs some more cash for the quarter as things were looking tight to finish the ramp up. The issues with fines has been a saga but its seems they have a proper plan and its getting sorted. It's pretty crazy to think that AJM is currently valued at the same price as when there was absolutely nothing standing where the plant sits producing today. At present I'm expecting a little more pain still before things improve.
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Thanks for the feedback. It's good to hear from shareholders who actually attend meetings and speak to management.
Originally posted by ConnerEx:
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My comments are only to give a bit of balance to those wanting to increase their exposure to AJM. Dr M you may also recall JB saying he was knocking back approaches from Aus banks to refinance the debt. KB and DH from PLS also made the same comments. That was only a few months back...in reality Aus banks are no where to be seen for both AJM and PLS.. In AJM's case, imo, JB always had the intention of refinancing with Aus banks once production commenced and that helped him accept the ludicrous terms of the current financiers. He thought it would be all short term...Aus banks (result of Royal Commission imo) have restricted lending across all markets and consider the Li sector out of bounds....hence the strangle hold AJM's financiers currently have...they are known to be aggressive. Please do not underestimate the negatives here. I would recommend JB approach Terry Smith (T20 shareholder) and see if he can provide short term finance to cover at least 9 months interest commitments . This is over and above any money injected from the CR. This will provide time necessary to get the production problems sorted and imo time for the carbonate pricing market out of China to improve. It's starting to tick up a notch. Imo the errors made by AJM in order of impact have been 1.Bad finance option up front 2. Owner operator model ..hence production issues 3. Perhaps inferior plant quality ..went the cheaper route unlike PLS who have a quality plant which cost much more.
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