That is the reality Melen100 whether the one eyed crew here believe it or not.
In ASN case, they have been ploughing 10s and 10s of millions into this project, and continue to do so even though the Lithium market has collapsed and the extremely important water permit is under an environmental halt pending enquiry.
All of the above has seen ASN with less than a quarter of cash in bank, and a $30m debt facility that will be used up in another 3 quarters time, this leaving ASN with no cash and a $30m loan IF this continues. And this is not my opinion, this us directly off the ASN last week's quarterly report. The other business issue is the high MC of ASN currently around $135m when most peers that aren't producing like ASN are around $20 to $30m,
ASN are not alone, survival is key now for those companies that ploughed all their cash into their Lithium projects and did not see the crash of the lithium market.
Thus is why I only buy cashed up stocks that are consent and will easily survive this market, even if some say they have cash coz they doing little work, well in hindsight that was the right way to go hey .
id rather invest in a small cap that us safe in cash and no debt rather than companies that faced tgf very real.prospect if potentially future administration/ liquidation.
Not saying that will happen here, but the cash position now is very fragile now.
all the best
ASN Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
