We have seen the W.A. government slash 20% off the cost of the Perth to Eneabba power line due to post-boom price falls for materials and construction costs. The same would be true of Balla Balla; the $1Bn capex estimated in 2007-2008 is probably now closer to $750-850M; slash 15% from that and it could come in as low as $600M.
But that's still a ridiculously huge sum for busted-ass Aurox to get together.
There is also a point to be made that Goodfool assumes management keeps track of the ASX/All ords indexes and plans their capital raisings around that; I would say they probably show as much interest in the ASX futures as they show in their shareholders. If they missed the opportunity to fund this at $1/sh they'll miss the opportunity to fund it when the price rebounds to 70c.
In fact, they will probably squash any rally with some ridiculous trading halt. They've done it plenty of times before. Don't trust them.
AXO Price at posting:
32.0¢ Sentiment: None Disclosure: Not Held
