A40.I hope that A40 can find a solution for their share holders’...

A40.

I hope that A40 can find a solution for their share holders’ sakes.

There is still a chance of an 11th hour negotiated financing deal and reprieve.

Perhaps Tribeca can be talked around with a new mine plan?

On a personal note, I know someone who works at the mine and I feel sorry for the way that will impact her family if it should come to that.

She is the mum of one of my daughter’s school friends.

Brings it home. Really does.

Although I never understood the reason why Galaxy took out a substantial holding there (and haven't been exactly supportive of it or the one at LPD)

it was my hope that it was the beginning of some kind of joint venture in a converter (perhaps Jiangte?) or perhaps jointly financing another operation of mutual benefit.

The Jiangte deal wasn’t really suited to A40. They need every dollar they can get, as quickly as they can get it.
Galaxy could afford to wait for a few months as the spodumene is processed into hydroxide and sold at a premium.
That could still happen. Perhaps Galaxy and a resurgent A40 could share in the deal?

I doubt that Galaxy will be part of another round of A40 financing as it seems, from my reading of the latest news that the boat has already sailed and may be prevented from doing so in any significant way by the 20% threshold as per ASIC’s rules.
CRing large amounts from here at a discount from here would be quite brutal.

If A40 was to CR at this point they would be facing a situation where Tribeca has already expressed a lack of confidence in management.
They gave management no real time to find another solution.

This will scare away many from opening their wallets and brings home how dangerous holding debt at these times can be.

I don’t know what specifically A40 have infringed about the mine plan but surely any CR will need to raise at least $40m to pay off Tribeca immediately?

Then there is the matter of an investment of funds to accomplish something like Galaxy’s Yield Optimisation Program.
That was approx $30m and 6 months.

Then some working capital to see it through C&M and upgrades so that it can come back with a lower cost of production.
We are talking about possibly $90-100m to see A40 set up to compete in this market.
Galaxy probably has quite a few of the solutions they might need addressed. And Primero probably has the rest.
But that quantity of time and money doesn't seem like the kind of amount Galaxy would like to reach in their pockets for.

Maybe its not needed all straight away, and some of it can be financed from shipments.
Perhaps some can come from immediately selling the stockpile. Perhaps Galaxy would be interested in making an offer for it?

Perhaps MIN will make a play?
Galaxy would be within their rights not to vote for any take over that didn't seem them make a profit though.
I would have said they'd also be in their rights to vote against any major issue of shares now
but perhaps some leniency is necessary now, and a resurgent A40 can repay the favour at some later point?

If Galaxy does get involved they had better be rock solid sure that they can the boat around.
$20m is a lot to lose in an investment. I hope that there was A40 dealt fairly with Galaxy

and that there is no bad blood over missing information.

I doubt Galaxy would make a take over offer but if it did so it would need to be at a significant discount, and one that didn’t involve scrip as our own share price is too low at this point.

I think it was strange that the notice referenced a weak spot market, as I doubt that any of the Australian miners have ever really sold any quantity there, and that it is primarily destined for non-battery application.
Makes it sound as if Tribeca wrote the entirety of the announcement.
I really hope they have a change in heart and offer A40 another chance.

All the best to A40 holders